The total accumulated dues of Rs 11,717.02 crore to NTPC from various SEBs includes a principal amount of Rs 7,574.49 crore and a surcharge of Rs 4,142.53 crore.

The latest figures available with the ministry of power reveals that Uttar Pradesh State Electricity Board (UPSEB) tops the list of defaulters, owing Rs 2,284.58 crore to NTPC followed by Delhi Vidyut Board (DVB) and Bihar State Electricity Board (BSEB) at Rs 2,257.04 crore and Rs 2,145.87 crore respectively.

Ministry officials said the mounting arrears might once again force NTPC to regulate power supplies to the defaulting states. NTPC had recently issued such notices to BSEB, West Bengal State Electricity Board (WBSEB) and GRIDCO in the eastern region effective from November 11, 1999.

In the northern region, notices were issued to UPSEB, Haryana State Electricity Board and J&K effective from December 1, 1999. Following NTPC's threat to various state governments over the regulation of power supplies, most of them agreed to maintain letter of credit (LC) to cover full current monthly payments besides agreeing to pay certain amount per month towards arrears. However, most of the states have failed to keep their promises.

Officials said that as a special measure towards recovery of its dues, NTPC had already communicated to various state governments that it would provide special incentive to the states which would commit LCs to cover full amount of current monthly bills.

For new projects, NTPC is making efforts for payments safeguards in the power purchase agreements (PPAs). This includes back-up of the state government guarantee for the LC.

Power ministry officials said that the Delhi Vidyut Board (DVB) had not even paid the central appropriation amount approved by the government way back in 1994 and 1996.

The Cabinet decision regarding central appropriation of dues as on December 31, 1996 limits the amount to be recovered in any year to 15 per cent of central plan allocation (CPA) of the state. However, officials said that in most cases the recovery extended much beyond four years.