Govt warns of penal action if BSES don’t clear dues

The government transmission company ‘Delhi Transco Limited’(DTL) has been facing financial hardships due to non-payment of wheeling charges by the Reliance-owned BSES Rajdhani and BSES Yamuna Limited.

A DTL senior official confirmed that there is heavy outstanding against the two discoms on account of non-payment of dues, which have accumulated to over Rs 1,958 crore. 

DTL always dispatched reminders to discoms but in vain. “The total accumulated due on BSES Rajdhani Power Limited (BRPL) as on February 29, 2016 is Rs 1170.89 crore. Similarly, the total accumulated due as on February 29 on BSES Yamuna Power Limited (BYPL) is Rs 787.61 

crore. These amounts have been accumulating since October 2010 as these companies were making part payments,” said a senior DTL officer.

The DTL has served regulation notices to BSES Rajdhani Power Limited and BSES Yamuna Power Limited for not making a payment of Rs 1,958 crore. Now, DTL is seriously considering stopping regulation in BSES areas, which covers 75 per cent of Delhi’s power consumers. “Due to the non-payment of these accumulated dues by BRPL and BYPL a serious threat has been posed to the operations and sustainability of DTL as its cash flow has been seriously affected. Delhi Transco may not be able to make payment of its statutory dues including the taxes and salary payment of its employees which may lead to a grievous crisis in future,” said a Power department official.

DTL spokesperson expressed his view that owing to worsening cash flow situation, DTL is not being able to implement work several projects, which may affect delivery of power to citizens for no fault of itself. Presently, DTL is not able to mobilise sufficient funds in meeting out the day-to-day maintenance expenses which is normally larger during the summer time. If this kind of a situation continues further there may be serious system failure which may lead to a power crisis in the national Capital during the summer.

On March 26, 2014, the Supreme Court in its order has directed these companies to make the payment of current dues from January 2014 regularly. The Apex Court has reiterated the same in its subsequent orders on May 6 and July 3, 2014. Despite the court’s order, BRPL and BYPL are not making payment of current dues which as on February 29, 2016 has accumulated to Rs 444.24 crore and 325.55 crore respectively.

Delhi Transco Limited has already filed a contempt petition in the Supreme Court. The next date of hearing is on April 4, 2016.