Power producers pull plug on truant discoms
Facing serious cash flow problems, heavily-indebted discoms in states like Uttar Pradesh and Tamil Nadu have also defaulted on power purchased from traders like PTC India, NTPC Vidyut Nigam and Adani.
The combined losses of the state power sector have crossed Rs 2 lakh crore, the bulk of which has been financed with short-term loans from banks and financial institutions. The Centre has approved a Rs 1.8 lakh crore debt restructuring scheme to help improve cash flows of discoms. However, debts are yet to be recast. Meanwhile, banks have stopped lending to discoms, compounding their cash flow woes.
* Discoms must maintain letters of credit to ensure payments to power firms
* Even when there are no dues, power co can issue the notice for not maintaining LC
* NTPC has served 90-day notices to BSES Yamuna Power, BSES Rajdhani Power
* Tata Power and Lanco Power too have issued notices to their customers
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