Election bonanza for BSES: Govt delays termination notice
25 Oct 2013 5:41 AM IST
According to well-placed sources, the Delhi government is in a quandary whether to put the Anil Ambani-owned power major on notice or not after its repeated failures to clear the outstanding amount to government undertakings.
Sources said chief secretary DM Spolia is seized of the matter and is seeking advise on whether ‘conclusive’ action can be taken against the company during this period. The situation has arisen following the Comptroller and Auditor General (CAG) ticking off Delhi government undertakings 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.
Power department, sources said, brought it to the notice of the government that given the CAG observations, show-cause notice should be issued to BSES asking them why their contract should not be cancelled after repeated default in clearing dues which are piling up. If the government recommends termination, the matter would come up before the regulator – Delhi Electricity Regulator Commission (DERC).
‘The BSES can contest the government recommendation before the regulator. However, given the non-payment of dues to not only Delhi government undertakings but also the central government power companies like the Damodar Valley Corporation and Satluj Jal Vidyut Nigam Ltd, the chances of recommendation being turned down by the regulator were remote,’ said a Delhi government source.
Damodar Valley Corporation and Satluj Vidyut Jal Nigam Limited have both already stopped power supply to the capital due to non-payment.
Sources said chief secretary DM Spolia is seized of the matter and is seeking advise on whether ‘conclusive’ action can be taken against the company during this period. The situation has arisen following the Comptroller and Auditor General (CAG) ticking off Delhi government undertakings 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.
Power department, sources said, brought it to the notice of the government that given the CAG observations, show-cause notice should be issued to BSES asking them why their contract should not be cancelled after repeated default in clearing dues which are piling up. If the government recommends termination, the matter would come up before the regulator – Delhi Electricity Regulator Commission (DERC).
‘The BSES can contest the government recommendation before the regulator. However, given the non-payment of dues to not only Delhi government undertakings but also the central government power companies like the Damodar Valley Corporation and Satluj Jal Vidyut Nigam Ltd, the chances of recommendation being turned down by the regulator were remote,’ said a Delhi government source.
Damodar Valley Corporation and Satluj Vidyut Jal Nigam Limited have both already stopped power supply to the capital due to non-payment.
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