Uttar Pradesh Power Corporation Ltd. (UPPCL) has not been able to liquidate its dues amounting to Rs. 2574.66 crore for power over drawing from northern grid despite Central Electricity Regulatory Commission (CERC) directions.
NORTHERN REGIONAL load Desptach Centre had reported that the outstanding payment for over drawing of power from grid amounts to Rs. 2561.31 crore as on August 31 this year. UPPCL was directed by CERC to liquidate the payment by October 31.
UPPCL, in its affidavit has submitted before commission that distribution utilities are incurring huge financial losses due to inadequate tariff, high losses and other reasons. UPPCL is now depending upon the financial restructuring plan announced by Ministry of Power.
The acceptance of scheme is however, subject to acceptance of mandatory conditions; the funds will be provided by banks and financial institutions to liquidate the outstanding power purchase liability. UPPCL has submitted details of outstanding loans to Ministry of Power and is awaiting for its acceptance.
UPPCL has sought three months further extension to liquidate the outstanding dues. CERC, after considering the submission of UPPCL has directed CMD of UPPCL to appear before commission on next date of hearing with a firm payment schedule for liquidation of outstanding dues and why he should not be held personally responsible for non-compliance of directions of commission. The next date of hearing has been fixed for January 8.