Centre’s threat to snap power supply makes states pay up
NEW DELHI: Overdues of central generation companies (gencos) have dropped to Rs 35,314 crore in August from Rs 49,780 crore a year after the power ministry invoked tripartite agreements with defaulting states and the RBI to recover outstanding amounts and asked power plants to snap supply to utilities that failed to pay their bills on time.
Under Raj Kumar Singh’s watch, the ministry has invoked agreements with Jharkhand, Karnataka and Tamil Nadu to recover combined overdues of Rs 30,087 crore, taking a politically non-partisan approach to tackle one of the banes of the power sector.
As of August 31, Jharkhand had an outstanding of Rs 3,292 crore. The ministry recovered Rs 714 crore and has served notice for recovery of Rs 1,126 crore. Karnataka discoms had an outstanding of Rs 5,240 crore.
