Private companies allege arm twisting by Tamil Nadu to cut power bills

Private power generators have alleged that Tamil Nadu has enabled release of payments under the Centre’s Aatmanirbhar Bharat scheme to only those plants that agreed to reduce power bills following arm twisting by the state.

The state has recommended bill payments from Power Finance Corp (PFC NSE -0.24 %) and REC NSE -0.21 % Ltd to NTPC NSE 0.39 % and a few others under second tranche of the liquidity infusion scheme, while excluding some like GMR Group, KSK Energy and IL&FS, who did not agree to offer discounts on the bills till March 2021, industry sources said. A senior official in Tamil Nadu Energy Department, however, refuted the allegations and said the department has made one set of recommendations to the financial agencies and will make another set of recommendations for disbursements in a week or 10 days after reconciliation of accounts.