The Uttar Pradesh Power Corporation Ltd (UPPCL) may partially clear the NTPC’s dues before the Friday deadline set by the latter to avoid it stopping electricity supply to the state for non-payment of arrears.
“We expect to get more than ₹4,000 crore as loan from the Centre on Wednesday or Thursday. We will clear the NTPC’s dues using the same amount,” a senior UPPCL official said, requesting anonymity. He admitted to the NTPC having served a notice threatening stopping power supply if the UPPCL did not clear dues by Friday but said that it was a routine affair.
“NTPC keeps sending notices and we go on paying dues and there is nothing serious about it,” he said.
NTPC’s power bills against the UPPCL have soared to more than ₹10,500 crore and the Centre-owned power-generating company has threatened that it will snap power supply to UP if the bills are not paid by Friday. The NTPC’s cumulative dues against the UPPCL, pending for more than 60 days, currently stand at ₹1,160 crore and the UPPCL is expected to clear these dues to settle the issue for the time being.