Rajasthan News

Rajasthan Discoms Pay Up Dues To Tata Power

by RajasthanDirect
Jan 09, 2013

Power distribution companies of Rajasthan state have paid up their dues to the company today. However, the company claims that this does not change the state of affairs between them. Tata Power snapped power supply to the state’s discoms after they failed to pay their dues to the company, and also cancelled the power purchase agreement (PPA) between them.

The latest move to pay dues, the company says, will not result in reinstating the PPA. “The outstanding payments have been made by Rajasthan only after termination of the contract. However the reason for termination is the payment security issues which are yet to be complied with,” Tata Power said in a statement.

Three power distribution companies of Rajasthan, namely, Jaipur Vidyut Vitaran Nigam, Ajmer Vidyut Vitaran Nigam and Jodhpur Vidyut Vitaran Nigam owed Rs 96.29 crore to the company. They were buying power from the company’s Mundra ultra mega power plant, which is based in Gujarat.

“We have given notice regarding discontinuation of supply to Rajasthan discoms with copy to load despatch. We are awaiting load despatch to act as per our letter,” said Tata Power.

Tata Power says that the three discoms have not fulfilled obligations related to collateral arrangements as well. “We maintain that due to consistent failure on the part of Rajasthan Discoms as procurers to fulfill the PPA obligations especially collateral arrangements in spite of repeated and regular reminders and large outstanding, CGPL (Mundra) was constrained to discontinue power supply to Rajasthan state discoms,” the company said.

The imported coal based project has already been under stress after its coal costs went up. The power plant imports coal from Indonesia, which changed its regulations linking exported coal price to international standards, taking away coal cost control off Tata Power’s hands. The company bought stakes in coal mines which belong to Bumi Resources.

“With continued non payment in a timely manner and non-availability of this payment security, the company finds it difficult to manage payment for its obligations to buy fuel and discharge its various obligations,” Tata Power said.

src: Business Standard


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