Maharashtra offered Delhi’s power after discoms fail to pay

Power consumers in Mumbai and Maharashtra can expect cheaper and ample power soon because of the national capital defaulting on its power payment.

National Thermal Power Corporation (NTPC) has offered Maharashtra a huge stock of around 2000MW power it earlier supplied to Delhi’s power companies; Maharashtra now faces a shortage of around 2,000 MW despite being the biggest power producer in the country. The letter to this effect was recently received by the Maharashtra State Electricity Distribution Company Ltd (MSEDCL) authorities. However state officials could not explain at what rate, for how long, and as to when this power would actually come in the state.

As per the NTPC letter, the two power suppliers in Delhi — the BSES Rajdhani Power Ltd and the BSES Yamuna Power Ltd — had failed to pay its long pending dues worth crores of rupees and hence it (the NTPC) was planning to withdraw 2,000 MW supply.

However, since the two suppliers have gone in appeal with Delhi power regulatory authority, it will take some time for initial quantum of this power to come in the state, said sources. “Quantity and time will all depend upon what kind of solution the regulatory and legal authorities come out with on this crisis in Delhi,” state officials said.

Maharashtra had already conveyed to the Centre its power shortage and thus demand for additional supply to meet the shortfall a month ago when the state faced crisis in its generation due to lack of coal supply. Even today, in state’s rural areas and certain semi-urban areas the load-shedding ranges from three to six hours due to power shortage.

So if the state gets this 2,000 MW of extra power that can be diverted anywhere in the state, will not only end load-shedding but will also help provide cheaper power to Mumbai which is facing high tariffs due to increasing quantum of supply of high cost of power.

“As per the central electricity regulatory commission (CERC) regulations and the power purchase agreement (PPA), the NTPC notice has formally conveyed Delhi suppliers — to proceed with regulation / suspension of power supplies to BSES Rajdhani Power Ltd and BSES Yamuna Power Ltd” revealed MSEDCL officials who have the copy of the letter.

“As these companies have defaulted in maintaining the requisite letter of credit and have not made payment of NTPC dues on due date, share of their power is proposed to be regulated/ suspended from 00 hours of December 8,” the NTPC letter to MSEDCL stated further.

At the end the letter NTPC also proposes to give this power to Maharashtra, officials in the state power ministry revealed.

Interestingly, the MSEDCL also replied to the NTPC proposal saying that they were ready to buy maximum quantum so would like to know the terms and conditions to buy it. “Only after finalizing the deal, we would be able to comment on the quantity, period and tariff of power,” said state officials.

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