Govt invokes 3-way pact to recover power dues from 3 states
The Narendra Modi government is showing absolute resolve to discipline state-run electricity distribution entities (discoms) refusing to honour their payment obligations on time. On behalf of the Centre-run power producers such as NTPC, the Union power ministry has invoked the seldom-used tripartite agreements between itself, the Reserve Bank of India (RBI) and the respective state governments, to recover the power dues to the company from the state governments of Karnataka, Tamil Nadu and Jharkhand.
Pushed to the wall by the long delays and even refusals by several discoms to pay overdue payments, NTPC has been repeatedly urging the Centre to invoke the TPAs.
