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RPower, Lanco snap supply to UPPCL on non-payment

Feb 16 2013, 02:50 IST
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SummaryPower generating companies Reliance Power and Lanco Infratech have been forced to cut off supplies to Uttar Pradesh Power Corporation with the latter not having cleared its dues.

be impossible for them to run the business. “Power developers cannot continue supplying power without getting paid for it. So even if there is a resource crunch, some part payment must be made by UPPCL so that developers can recover their basic cost.”

Shailendra Dubey, secretary general of All India Power Engineers Federation and a former chief engineer of UPPCL, however, said: “While one cannot defend UPPCL’s action of not making timely payments, the fact that the Reliance and Lanco managements have opted to deliberately shut down their units amounts to highly irresponsible behaviour on their part. At a time when there is acute power shortage in the entire country, this act is unpardonable. If UPPCL was unable to pay the bills, they could have sold power through open access.”

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