The Supreme Court on Wednesday summoned chief financial officers (CFOs) of BSES Rajdhani Power Limited (BPRL) and BSES Yamuna Power Limited (BYPL) to appear before it personally on the issue of clearing Rs 141.24 crore arrears due to Dam-odar Valley Corporation (DVC) for purchase of power.
The Capital’s power distribution companies have claimed before SC that they couldn’t pay DVC the outstanding amount due to “the strained cash flow position.” Assuring the court that the dispute would not affect the continuity of power supply to Delhi during Diwali, the discoms sought an opportunity to work out a “negotiable settlement” with the corporation.
A three-judge bench headed by justice DK Jain asked the CFOs to appear on Thursday after the company’s counsel Shyam Divan failed to assure the court on when the discoms would clear the arrears. The discoms, however, guaranteed they had already tied up bilateral banking arrangements, for both short-term and medium-term power, to ensure uninterrupted power supply to its consumers.
The discoms filed their affidavits in reply to DVC’s allegations that BRPL and BYPL have failed to make payment against outstanding dues. The discoms blamed the low tariff hike in the Capital for its precarious financial position.
The affidavits claimed the delay in issuance of the tariff order for financial year 2010-2011 added to their woes.