BYPL seeks funds from Govt, says some areas may face outages
Reliance Infra-backed power distribution company BSES Yamuna Power Ltd has informed Delhi Government that areas in Central and East Delhi may face eight to 10 hours of power cuts from Saturday as the company was facing serious fund crunch to buy electricity.
New Delhi: Reliance Infra-backed power distribution company BSES Yamuna Power Ltd has informed Delhi Government that areas in Central and East Delhi may face eight to 10 hours of power cuts from Saturday as the company was facing serious fund crunch to buy electricity.
In a letter to Delhi`s Power Secretary Puneet Goel, BYPL sought immediate financial assistance from the government to deal with the "difficult" situation as it was not being able to make payments to various state-run power generators including NTPC and NHPC.
The discom said banks have "withdrawn new funding support" owing to accumulated revenue arrears of Rs 6,200 crore and it was finding it difficult to arrange power for the city.
BYPL has sought immediate intervention of Delhi Government in helping it overcome the situation and urged it to take up the issue urgently with NTPC, NHPC, Ministry of Power and Ministry of Finance.
The company said banks are "alarmed" by Delhi Government`s "subsidy-led" approach to tariffs, regardless of actual cost of power.
While announcing 50 per cent subsidy to consumers whose monthly consumption does not exceed 400 units, the Delhi Government had said it will adjust the subsidy component of BSES discoms with its pending dues to its power generation companies.
The BSES Yamuna Power Ltd and BSES Rajdhani Power Ltd, which supply power in 70 per cent areas in Delhi, owe around Rs 4,000 crore to Delhi Government-run power generation and transmission companies.
Both BRPL and BYPL have been maintaining that they are going through difficult financial condition. They have been demanding significant hike in tariff, citing rise in power purchase cost.
According to DERC figures, the private discoms operating in the city have a revenue gap of whopping Rs 19,500 crore.