Millennium Post

'Clean energy producers can move NCLT against discoms over dues'

Clean energy producers can move NCLT against discoms over dues

New Delhi: Flagging non-payment of dues by power discoms to renewable energy producers, Union Power Minister R K Singh has cautioned seven states, including Maharashtra and Karnataka, that the developers could approach NCLT against the distribution companies to recover payments of around Rs 5,355 crore.

Singh in a letter has urged the chief ministers of these states to issue directions to their respective power distribution companies (discoms) for clearing the dues of renewable energy firms in the next few days.

The power and new & renewable energy minister pointed out the power producers are likely to default on their payment obligations due to non-clearance of dues by the discoms and there is a "danger" of them approaching the National Company Law Tribunal (NCLT) for recovering the pending amount.

"Due to the non-payment of dues, it is likely that many of these RE (renewable energy) power producers would default in making payment to Ireda (Indian Renewable Energy Development Agency) and other financial institutions. Any default would make them NPAs (non-performing assets)," the Union minister said.

PTI

PTI

Our contributor helps bringing the latest updates to you


Share it
Top