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Govt makes it mandatory for states to clear power dues
In a major power sector reform initiative, Government on Saturday night made it mandatory for states to clear their long pending electricity dues of Rs 36,000 crore to central power companies or issue bonds as one time settlement.
In a major power sector reform initiative, Government on Saturday night made it mandatory for states to clear their long pending electricity dues of Rs 36,000 crore to central power companies or issue bonds as one time settlement.
It was also decided at the Cabinet Committee on Economic Affairs (CCEA) meeting, chaired by Prime Minister Atal Bihari Vajpayee, that failure to clear the dues or issue bonds would invite punitive steps like snapping of power supplies to defaulting states by the power companies including NTPC, highly placed sources said.
The decision follows wide-ranging parleys held by Power Minister Suresh Prabhu with almost every state for building a consensus.
As per the decision, SEBs would get electricity only after clearing the dues, failing which the Centre would deduct from funds meant for states.
The CCEA decided to recover the outstanding upto September, 2001 instead of February, 2001, as suggested by the Group of Ministers on the basis of Montek Singh Ahluwalia Committee recommendations.
The decision was an outcome of pressure by Power and Coal Ministries for clearing the outstanding with SEBs that was threatening to severely impact the liquidity of state owned undertakings of PSUs, sources said.
With this, NTPC would emerge as the largest beneficiary and would help Government make significant progress towards power capacity as an addition during the tenth plan.
As many as eight states including Andhra Pradesh have either consented or signed tripartite agreement for clearance of dues of SEBs. Bureau Report
The decision follows wide-ranging parleys held by Power Minister Suresh Prabhu with almost every state for building a consensus.
As per the decision, SEBs would get electricity only after clearing the dues, failing which the Centre would deduct from funds meant for states.
The CCEA decided to recover the outstanding upto September, 2001 instead of February, 2001, as suggested by the Group of Ministers on the basis of Montek Singh Ahluwalia Committee recommendations.
The decision was an outcome of pressure by Power and Coal Ministries for clearing the outstanding with SEBs that was threatening to severely impact the liquidity of state owned undertakings of PSUs, sources said.
With this, NTPC would emerge as the largest beneficiary and would help Government make significant progress towards power capacity as an addition during the tenth plan.
As many as eight states including Andhra Pradesh have either consented or signed tripartite agreement for clearance of dues of SEBs. Bureau Report