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Mumbai: BEST to take loan to repay Rs 561-crore dues to Tata Power
In a notice dated May 14, Tata Power had stated that if BEST failed to repay the dues by May 21, it would divert power supply from the same day for the latter’s consumers
With the deadline set by Tata Power ending on Tuesday, the Brihanmumbai Electric Supply and Transport Undertaking (BEST) said on Monday that it will take a loan to repay dues worth Rs 561.58 crore to the power company.
In a notice dated May 14, Tata Power had stated that if BEST failed to repay the dues by May 21, it would divert power supply from the same day for the latter’s consumers. BEST supplies power to 10.5 lakh consumers between Sion and Colaba.
RJ Singh, BEST’s deputy general manager, said, “We have written to Tata Power to not re-direct the power supply and also told them that the first instalment of the pending amount will be paid in the next couple of days. The total amount will be paid subsequently.”
Officials did not reveal the loan amount. However, its repayment, along with the interest, will add to BEST’s financial burden.
As per Tata Power’s notice, BEST is yet to release payments from December to April. The power company declined to comment on the issue.
Meanwhile, BEST’s committee members, including those from the ruling Shiv Sena-Bharatiya Janata Party (BJP) alliance, walked out of committee meeting, stating that they were not kept in the loop on this issue. Corporators from across party lines also slammed the administration for its poor management of accounts.
Anil Kokil, a committee member from the Sena, said, “The payment has been pending for five months, but the committee was not informed that BEST is not in the condition to repay it. Tomorrow, if there is no electricity in the city, we will be blamed. This is a deliberate attempt to put the blame on the committee.”
Another member, Shrikant Kavthankar, from the BJP, said, “The delay in the repayments is costing more to the BEST. Who will take responsibility for this? Why has the committee not been informed about the notice?”
BEST had entered into a power purchase agreement with Tata Power for 600MW power supply.
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