NTPC to stop supplying BSES; Delhi may have blackout…

India’s largest power producer National Thermal Power Corporation (NTPC) has issued a notice to  two private sector distribution utilities of Delhi, BSES Rajdhani and BSES Yamuna (Subsidiaries of Reliance Infrastructure Limited) for the money due by them to NTPC and threatened to cut off supply of electricity to them. This may result in Blackout in Delhi.

Currently, NTPC is supplying around 2050 MW of electricity (more than 68% of total requirement) to BSES utilities.

However, according to Spark’s market analysis both the BSES utilities have not cleared the due of Rs. 814 Crs for the energy supplied during the month of July 2011. As per the Power Purchase Agreement (PPA) signed with NTPC, NTPC could realize only Rs. 334 Crs through letter of credit (LC). Further NTPC has supplied electricity worth of Rs. 425 Crs during August. Hence, the combined outstanding amounts due by BSES utilities are more than Rs. 900 Crs.