Rising ‘over-dues’ of discoms: NTPC bites back at states, seeks to invoke three-way agreement

Pushed to the wall by the obstinate refusal of several electricity distribution companies (discoms) to pay over-due payments, state-run power producer NTPC will soon ask the Centre for its concurrence to invoke seldom-used tripartite agreements (TPAs).

These agreements, first signed in FY02 and extended for a decade in 2016, make it incumbent on the Reserve Bank of India (RBI) to deduct the default amount from the respective state government’s accounts with the central bank.