+
NTPC sends notice to UPPCL, threatens to cut power supply
POWER & RENEWABLE ENERGY

NTPC sends notice to UPPCL, threatens to cut power supply

NTPC has threatened the Uttar Pradesh Power Corporation (UPPCL) to cut power supplies from Friday due to the total outstanding amount rising to over Rs 10,500 crore.

The UPPCL’s total dues, pending for over 60 days, currently stand at Rs 1,160 crore. If immediate arrangements are not made, the state could lose 5,512 MW of power supply from various NTPC power plants, comprising Kahalgaon, Rihand, Dadri, Farakka and Singrauli.

According to the regulation notice sent to UPPCL by the NTPC on August 12, the dues have been pending despite repeated follow-ups at multiple levels in person and through letters. The state’s overdue pending receivables of about 60 days or more to all power generators from which it supplies electricity were at Rs 1,689 crore at the end of June.

The overall power demand in Uttar Pradesh is about 21,116 MW, and NTPC curtailing supply indicates that the state is losing about a quarter of its power source.

To insulate renewable energy-based power generators from the vagaries of irregular payments, the state’s electricity regulator has ordered UPPCL to deposit Rs 7,244.7 crore in the renewable purchase obligation regulatory fund by January 2022 to pay wind, solar and hydropower generators providing electricity to the state. The deposit of Rs 1,459.3 crore is to be paid by UPPCL for not reaching its RPO targets till FY21.

Discom overdues to power generators at June-end were at Rs 91,579 crore, dropped 9.1% from the previous year in the same period, displaying the utilisation of the PFC-REC loans under the Rs 1.25-lakh-crore liquidity infusion scheme declared by the Centre under the Atmanirbhar Bharat package to clear discom dues to electricity producers.

About Rs 77,000 crore had been distributed to the states under the scheme in the first tranche. After dropping in March after receiving funds under the liquidity scheme, the overdues to power plants have steadily increased.

Image Source


Also read: CESC subsidiary set to acquire Chandigarh's power discom

NTPC has threatened the Uttar Pradesh Power Corporation (UPPCL) to cut power supplies from Friday due to the total outstanding amount rising to over Rs 10,500 crore. The UPPCL’s total dues, pending for over 60 days, currently stand at Rs 1,160 crore. If immediate arrangements are not made, the state could lose 5,512 MW of power supply from various NTPC power plants, comprising Kahalgaon, Rihand, Dadri, Farakka and Singrauli. According to the regulation notice sent to UPPCL by the NTPC on August 12, the dues have been pending despite repeated follow-ups at multiple levels in person and through letters. The state’s overdue pending receivables of about 60 days or more to all power generators from which it supplies electricity were at Rs 1,689 crore at the end of June. The overall power demand in Uttar Pradesh is about 21,116 MW, and NTPC curtailing supply indicates that the state is losing about a quarter of its power source. To insulate renewable energy-based power generators from the vagaries of irregular payments, the state’s electricity regulator has ordered UPPCL to deposit Rs 7,244.7 crore in the renewable purchase obligation regulatory fund by January 2022 to pay wind, solar and hydropower generators providing electricity to the state. The deposit of Rs 1,459.3 crore is to be paid by UPPCL for not reaching its RPO targets till FY21. Discom overdues to power generators at June-end were at Rs 91,579 crore, dropped 9.1% from the previous year in the same period, displaying the utilisation of the PFC-REC loans under the Rs 1.25-lakh-crore liquidity infusion scheme declared by the Centre under the Atmanirbhar Bharat package to clear discom dues to electricity producers. About Rs 77,000 crore had been distributed to the states under the scheme in the first tranche. After dropping in March after receiving funds under the liquidity scheme, the overdues to power plants have steadily increased. Image Source Also read: CESC subsidiary set to acquire Chandigarh's power discom

Next Story
Real Estate

DLF Returns to Mumbai with Premium Andheri Residential Project

Delhi-NCR based real estate major DLF announced its return to the Mumbai market on 17 July with the launch of its premium residential project, The WestPark, in Andheri. The first phase includes 416 apartments spread across four towers, with two towers launched on the announcement day. The company plans to invest over Rs 8 billion in the project and expects a topline exceeding Rs 20 billion from Phase 1.“We have launched two towers and, given the strong response, plan to unveil the remaining two towers ahead of schedule, within the next few days,” said Aakash Ohri, Joint Managing Director o..

Next Story
Infrastructure Urban

APCRDA Advances Net Zero Goal with IGBC Training for Officials

In a significant stride towards Andhra Pradesh’s Net Zero target by 2040 and the Swarna Andhra 2047 vision, the Andhra Pradesh Capital Region Development Authority (APCRDA), in partnership with the Indian Green Building Council (IGBC), conducted a high-level capacity-building programme for senior officials in Vijayawada on Friday.Held at a city hotel, the session saw the participation of over 50 senior APCRDA officials, including the Engineer-in-Chief, Chief Engineer (H&B), Director (Planning), Director (Environment), and heads of key departments. The training centred on IGBC’s Green B..

Next Story
Infrastructure Energy

Assam Solar Project Halted as Waaree EPC Contract Is Cancelled

Following the Assam government’s withdrawal from its proposed solar project, the Engineering, Procurement, and Construction (EPC) contract awarded to Waaree Renewable has been suspended. Waaree Group’s EPC division informed the stock exchange of this development through a regulatory filing.The Assam solar project was suspended due to funding challenges, which rendered the initiative unviable for the state government. Waaree Renewable Transmission Limited (RTL) explained that the Government of Assam has withdrawn the project’s funding via the Asian Development Bank (ADB) loan. Consequentl..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?