Madhya Pradesh, Uttar Pradesh and Punjab succeeded in averting power supply cut as they acceded to NTPC's demand to sign an agreement for clearing past dues and ensuring payment security for future.
"They have communicated their acceptence to sign the agreement with the Centre and NTPC to clear the outstandings and smoothen the future payments mechanism... we have decided to withdraw our earlier notices to them to cut supply of power," NTPC Chief C P Jain told PTI in an interview in New Delhi.
Asked when these states would issue bonds, Jain said no time frame has been fixed but "we shall try to get it done as fast as possible."
Last month NTPC had issued notices to four defaulting states along with Orissa asking them to sign tripartite agreements or face a power cut.
With regard to Orissa, Jain said though the state has not sent any acceptence but the decision to regulate power has been deferred for the time being. He, however, refused to give reasons and said talks were on with Orissa.
Bihar, UP, MP and Orissa have combined outstanding of about Rs 7,500 crore against which the tax free bonds have to be issued in favour of NTPC, they added. Bureau Report