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Dark days ahead for G Noida

Residents of Greater Noida may face a serious electricity crisis with the onslaught of winter if the UP Power Corporation Ltd does what it is threatening to, reports Brajendra K Parashar.

india Updated: Sep 06, 2008 00:26 IST
Brajendra K Parashar

Residents of Greater Noida may face a serious electricity crisis with the onslaught of winter if the UP Power Corporation Ltd (UPPCL) does what it is threatening to.

UPPCL has served a notice to Noida Power Company (NPCL), that it will no longer supply power to it after November 30, the deadline for the power purchase agreement (PPA) between the two.

NPCL has been supplying electricity to Greater Noida for 15 years.

Against the 70 MW of power required for city, NPCL purchases a larger chunk of 45 MW of power from UPPCL and arranges the rest from other sources.

Relations between the two companies have been strained for many years, with both accusing the other of dues worth several hundred crores of rupees.

The issue of dues had been settled legally but UPPCL, however, felt supplying power to NPCL at the present rate of Rs 2.72 per unit is a loss, sources said.

“We do not have power for our own consumers, so how can we go on supplying power to Greater Noida,” said UPPCL Director (Distribution), Arun, confirming they have served a notice to NPCL.

NPCL PRO Surjit, however, said, “We have not got any notice yet.”

As per a PPA signed between UPPCL and NPCL in 1993, the former was to sell power to the latter for four and a half years. NPCL, however, continued to get electricity from UPPLC without signing any further PPA.

“Even the High Court in 2000 told NPCL to set up its own powerhouse as per the PPA and the NPCL’s counsel told the court the company would set up one within 3-4 years but it has not yet come out with its own power house and has instead moved the Supreme Court,” said Arun, adding, “We cannot sell power to the NPCL indefinitely, more so when we are purchasing power from other sources to fulfil our own requirements.”