NTPC notice to Haryana on supply after discoms default

Upset over non-payment of dues, NTPC, the largest power generation company in the country, has served an ultimatum to the Haryana government on power supply to the two state-owned power distribution companies.

Upset over non-payment of dues, NTPC, the largest power generation company in the country, has served an ultimatum to the Haryana government on power supply to the two state-owned power distribution companies.

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NTPC gave the warning after distribution companies UHBVN and DHBVN, tripped on their bills for power purchased from it. It has cited provisions of bulk power sale agreement and tripartite agreement signed between the center, state government and the RBI, which provide for discontinuation or reduction in supply in case of default.

The Haryana power purchase centre (HPPC) headed by managing director of UHBVN, owes Rs 480 crore. NTPC raised a bill of Rs 334 crore in August 2011, but got a payment of only Rs 75 crore. Another bill of Rs 221 crore sent in September remains unpaid, according to sources. The discoms have been asked to clear the dues before October 4.