adani power: Adani Power demands Maharashtra discom to pay Rs 10,000 crore by Feb 28
NEW DELHI: Adani Power has asked Maharashtra Electricity Distribution Company (discom) MSEDCL to pay just over Rs 10,000 crore, or 50% of the outstanding amount by February 28.
In a letter to MSEDCL, Adani Power cites the Supreme Court’s Jan. 31 order, saying it clearly sets a time limit of four weeks from the date of the order for discom to pay.
In hearing Adani Power’s motion over non-payment for electricity supplied to Maharashtra under four power purchase agreements signed between 2008 and 2013, an SC bench consisting of Chief Justice NV Ramana, of judge AS Bopanna and judge Hima Kohli had declared that the production companies (gencos) would have to close if the discotheques did not pay their dues.
The bench ordered the MSEDCL to pay 50% of the dues in four weeks. On February 2, while hearing another petition by Adani Power against Uttar Haryana Bijli, Vitaran Nigam passed a similar order.
Discoms dues to gencos topped Rs 1 lakh crore at the end of January and are proving to be a major impediment to power reforms. Non-payment of dues by nightclubs causes financial stress for gencos, who must borrow money at high interest to maintain their operations. The interest on the loan adds to the overall cost and has an impact on the overall finances.
Data from the Ministry of Energy shows that Maharashtra is the main defaulter with an outstanding amount of Rs 21,250 crore, followed by Tamil Nadu with an outstanding amount of Rs 21,132 crore.
In a letter to MSEDCL, Adani Power cites the Supreme Court’s Jan. 31 order, saying it clearly sets a time limit of four weeks from the date of the order for discom to pay.
In hearing Adani Power’s motion over non-payment for electricity supplied to Maharashtra under four power purchase agreements signed between 2008 and 2013, an SC bench consisting of Chief Justice NV Ramana, of judge AS Bopanna and judge Hima Kohli had declared that the production companies (gencos) would have to close if the discotheques did not pay their dues.
The bench ordered the MSEDCL to pay 50% of the dues in four weeks. On February 2, while hearing another petition by Adani Power against Uttar Haryana Bijli, Vitaran Nigam passed a similar order.
Discoms dues to gencos topped Rs 1 lakh crore at the end of January and are proving to be a major impediment to power reforms. Non-payment of dues by nightclubs causes financial stress for gencos, who must borrow money at high interest to maintain their operations. The interest on the loan adds to the overall cost and has an impact on the overall finances.
Data from the Ministry of Energy shows that Maharashtra is the main defaulter with an outstanding amount of Rs 21,250 crore, followed by Tamil Nadu with an outstanding amount of Rs 21,132 crore.
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