As BSES defaults, power generation firms suffer
21 Nov 2013 5:19 AM IST
Thanks to its recalcitrant ways, the private power distributor BSES (Rajdhani and Yamuna) Power Limited has pushed government-run Indraprastha Power Generation Co. Ltd. (IPGCL), Pragati Power Corporation Ltd (PPCL) and Delhi Transco Limited (DTL) into a financial crisis.
With the total outstanding payment on BSES’ part mounting to Rs 4,056 crore as of 31 October, Delhi government’s power generating companies have expressed their inability to pay monthly salaries and pensions to their staff and retired employees, respectively.
Delhi Electricity Regulatory Commission (DERC) had on 5 November reacted to petitions by IPGCL, PPCL as well as DTL on non-payment of dues by both BSES ( Rajdhani and Yamuna) bodies, by asking the discoms clear the dues within a week. However, the BSES did not heed to the DERC order, Delhi power officials said.
DERC has on 29 October, heard the counsels for IPGCL and PPCL and also the counsel for the respondents BSES (Rajdhani and Yamuna). Both IPGCL and PPCL said that due to non-payment of past dues amounting to Rs 2,794 crore, they were unable to pay staff salaries and purchase fuel for running the plants.
‘The respondents (BSES), on the other hand, pleaded helpless on many accounts primarily citing inadequacy of cash inflows. They said that due to shortage of funds they were finding it difficult to meet their obligations of payment to the petitioners. The banks have also expressed their inability in advancing further loans to carry on the operations,’ DERC said, while releasing its order.
DTL has also claimed that it was unable to pay its staff because the two discoms — BSES Rajdhani and BSES Yamuna — owed it approximately Rs 1,262 crore till 31 October.
DTL officials said the defaults have led to a situation, where it was left with dues worth Rs 20 crore on salaries, office expenses, loan installment and interest payment.
On 25 October, Millennium Post had reported that the Delhi government had delayed BSES’s termination notice, despite the ticking off it received from Comptroller and Auditor General (CAG). The CAG had ticked off the Delhi government for borrowing money from the market to run their operations, when a sum of over Rs 4000 crore is yet to be recovered from BSES Yamuna and Rajdhani, which are responsible for distribution of power in east and south Delhi respectively.
Meanwhile, in further trouble for the BSES, on 1 November, the Chief Electoral Office had warned of strict action against them, as they were accused of violating the model code of conduct by circulating bills, which carried a photographs of power minister Haroon Yusuf and chief minister Sheila Dikshit.
With the total outstanding payment on BSES’ part mounting to Rs 4,056 crore as of 31 October, Delhi government’s power generating companies have expressed their inability to pay monthly salaries and pensions to their staff and retired employees, respectively.
Delhi Electricity Regulatory Commission (DERC) had on 5 November reacted to petitions by IPGCL, PPCL as well as DTL on non-payment of dues by both BSES ( Rajdhani and Yamuna) bodies, by asking the discoms clear the dues within a week. However, the BSES did not heed to the DERC order, Delhi power officials said.
DERC has on 29 October, heard the counsels for IPGCL and PPCL and also the counsel for the respondents BSES (Rajdhani and Yamuna). Both IPGCL and PPCL said that due to non-payment of past dues amounting to Rs 2,794 crore, they were unable to pay staff salaries and purchase fuel for running the plants.
‘The respondents (BSES), on the other hand, pleaded helpless on many accounts primarily citing inadequacy of cash inflows. They said that due to shortage of funds they were finding it difficult to meet their obligations of payment to the petitioners. The banks have also expressed their inability in advancing further loans to carry on the operations,’ DERC said, while releasing its order.
DTL has also claimed that it was unable to pay its staff because the two discoms — BSES Rajdhani and BSES Yamuna — owed it approximately Rs 1,262 crore till 31 October.
DTL officials said the defaults have led to a situation, where it was left with dues worth Rs 20 crore on salaries, office expenses, loan installment and interest payment.
On 25 October, Millennium Post had reported that the Delhi government had delayed BSES’s termination notice, despite the ticking off it received from Comptroller and Auditor General (CAG). The CAG had ticked off the Delhi government for borrowing money from the market to run their operations, when a sum of over Rs 4000 crore is yet to be recovered from BSES Yamuna and Rajdhani, which are responsible for distribution of power in east and south Delhi respectively.
Meanwhile, in further trouble for the BSES, on 1 November, the Chief Electoral Office had warned of strict action against them, as they were accused of violating the model code of conduct by circulating bills, which carried a photographs of power minister Haroon Yusuf and chief minister Sheila Dikshit.
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