The Jharkhand Government may be asked to sacrifice Rs 2,334 crore plan fund allocation for 2013-14 to settle part of the dues to Damodar Valley Corporation (DVC). For years, Jharkhand avoided paying electricity dues to DVC running up a massive bill of Rs 5,500 crore. There is also a move to force the state to henceforth enjoy supplies only against full payment. At an average of Rs 79 crore worth of dues (from Jharkhand) piling up every month, approximately Rs 1,000 crore of estimated annual revenue is unrealised. In terms of cash flow, almost the entire 16 per cent margin granted by the electricity tariff regulator is never realised.
Contact: Government of Jharkhand.