RPower, Lanco snap supply to UPPCL on non-payment
However, also speaking on condition of anonymity, an official of Rosa TPS said that while it was aware of the poor financial condition of UPPCL, it was not possible to carry on without getting payments. “UP cannot keep on buying power without paying for it. It has to work towards improving its financial position on an ASAP basis,” he said.
Ashok Khurana, director general of the Association of Power Producers, too, was of the view that UP has to work out a way to make some payments to power producers, without which it would 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
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