Terse letter to Anil Ambani over ‘dismal’ performance

Following utter failure of BSES to improve electricity supply in the city, Delhi’s power minister Satyendar Jain on Tuesday shot off a terse letter to Reliance ADA Group chairperson Anil Ambani to present a ‘concrete roadmap’ for improvement. Jain has in his letter alleged fudging of data to show improvement in performance.

 “You might have had a cosy relationship with previous Governments in Delhi at the expense of public interest, kindly note that  the new Government is fully committed to protecting the interests of public and their welfare. In order to do that, the new AAP Government in Delhi will not hesitate in taking strong decisions,” said Satyendar Jain in a strong worded letter to Ambani.

 The minister asked Ambani to come for a meeting ‘immediately’ with a ‘concrete roadmap’ to improve electricity supply in the city. “I hope to see you sometime early next week,” he said in the letter. The minister has alleged that BSES companies had failed to check unprecedented power outages in Delhi due to local faults and people faced power cuts in the sweltering summer despite power being in sufficient quantity.

 “After a stern warning from the Government, your companies have now started fudging the data to show improvement. If there are 10 outages, the daily report from your company shows only seven,” Jain wrote, adding the situation did not improve despite meetings with Chief Executive Officer (CEO) of the company.

 The minister also reminded Ambani that his companies were handed over the responsibility of power distribution in the city in 2002, with expectations to bring down tariffs and install a world class power system in Delhi at par with other capitals in the world. “However, you have  failed to do so,” said Jain. He further added that there were also allegations of corruption and financial irregularities including siphoning off funds by BSES. “Some of these allegations have been corroborated in CAG’s draft report and in earlier DERC orders,” Jain said in the letter. 

Reliance ADAG owned BSES has been in news for wrong reasons since they were handed over the power supply in two thirds of the Capital. In the most recent case, it was only after several rounds of meetings mediated by the Delhi Electricity Regulatory Commission (DERC), that BSES Yamuna and BSES Rajdhani agreed to clear Rs 1300 crore dues of NTPC by September. The power generator had even threatened to stop power supply if their dues were not cleared.

Meanwhile, the  NTPC in a circular issued on Tuesday said: “Subsequent to the issue of Regulation of power supply notice to BSES Delhi Discoms by NTPC & APCPL (Jhajjar), BSES Discoms (BRPL & BYPL) have agreed to pay NTPC dues as per the action plan given to NTPC / DERC / GoNCTD / MoP and have indicated to pay all NTPC dues by Sept 2016. From Sept/ Oct 2016 onwards, they will maintain outstanding limited to 60 days. The outstanding dues from these two Discoms (ie BRPL & BYPL) is amounting to Rs 1534 Cr for NTPC as on 14.06.2016. Further, in spite of DERC directives no payment has been released by these two discoms for APCPL (Jhajjar) amounting to Rs 993 Cr as on 14.06.2016”

The BSES also owe the Delhi government in excess of Rs 6,000 crore, and Delhi’s PSU – Delhi Transco Ltd around Rs 2,000 crore. The government recently decided to adjust the outstanding amount with the electricity bills to be paid by Delhi government establishments to the companies.