BHUBANESWAR: The Ministry of Power making it mandatory for power distribution licensees to open and maintain adequate letter of credit (LoC) as a payment security mechanism under power purchase agreements (PPAs) from August 1, the State with an outstanding dues of about Rs 590 crore is likely to face power regulation from Central power generating companies.
In a recent communication to the state government, the Power Ministry has directed national, regional and state-level load despatch centres (LDCs) to schedule electricity from only those plants that have secured letters of credit from distribution companies against the supply.
