Zero-tolerance policy: NTPC threatens to cut power supply to defaulters UP and MP

With the Union power ministry directing government-owned power companies to adopt a “zero tolerance policy” regarding payment delays from states, NTPC has threatened to cut part supplies to Uttar Pradesh and Madhya Pradesh from Sunday if the bills are not cleared soon. While UP’s cumulative dues to NTPC currently stand at Rs 1,786 crore, of which Rs 821 crore remains unpaid beyond due dates, the total receivables from MP is Rs 1,645 crore of which bills of Rs 683 crore have crossed payment deadlines.

If immediate arrangements are not made, both the states could lose 2,793 MW and 2,430 MW of power supply, respectively, from several NTPC power plants. As per the regulation notices sent to states by NTPC on October 22, the dues have been pending in spite of “repeated follow-ups at various levels in person as well as through letters”. After a meeting between several power plants and senior government officials held on October 8, the Union power ministry issued directives on October 21 to central government power companies stating that “in case of delay in payment from states beyond due date, regulation of power shall be started for at least 50% of the power supply and gradually increase the quantum of regulation”.