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| J&K unable to pay power purchase bill, Rs 577.97 cr still outstanding | | Power providers demand irrevocable LCs | | Syed Junaid Hashmi
JAMMU, Mar 29: Power deficient Jammu and Kashmir is in default of Rs. 577.97 crore to various power utilities in Northern India from which it purchased power during the financial year 2010-11.
Though this default continues to be there since 2005 yet government claims of having improved the revenue generation and made improvement in plugging transmission and distribution losses. Further, irked over repeated fake promises of the officials of J&K power department, almost all the power utilities have sought opening of irrevocable letter of credit (LC) from the PDD within shortest possible time.
Official documents reveal that despite repeated reminders for opening irrevocable LC, J&K PDD has not done anything substantial apart from promising payments to the power utilities before the closure of this financial year. Of the Rs. 577.97 crore, J&K has to pay around Rs. 339.81 crore as Union of India charges to Northern Region Power committee (NRPC). Directions have already been issued to the state to expedite payment of outstanding UI charges as on January 31, 2011 immediately.
As on January 31, 2011 of the current financial year 2010-11, outstanding reactive energy charges against J&K were Rs 21. 03 crore while the outstanding Reactive Energy Charges at the beginning of the current financial year 2010-11 were Rs 54.95 crore. Also, an amount of Rs 39.44 crore was outstanding against J&K as interest due to late payment of reactive charges upto March 31, 2010. J&K has been stringently told to liquidate the outstanding reactive energy charges immediately.
Ironically, NRPC had sanctioned Rs 22 crore from reactive pool account of northern region to J&K for installation of capacitors. NRPC has noted with anguish that the progress in installation of capacitor is very poor. It has asked PDD to expedite installation of capacitors and submit the invoices at the earliest so that the amount could be reimbursed from reactive pool account to J&K.
POWERGRID is also appalled because of the inability of PDD Jammu and Kashmir to open an irrevocable LC which was mandatory as per CERC regulations. Interestingly, the issue was raised by POWERGRID during the 16th, 17th and 18th commercial subcommittee meetings but to no avail. According to official documents, PDD repeatedly made fake promises of opening irrevocable LC shortly.
However, LC has not been opened so far and outstanding as on January 31, 2011 was Rs. 37.13 Cr. and outstanding for more than 60 days was Rs. 21.13 Crore. PDD assured POWERGRID that matter of opening of LC and release of payment has been referred to state government.
J&K is also a defaulter of Satluj Jal Vidyut Nigam Limited (SJVNL). SJVNL had also sought opening of LC from a bank by PDD, J&K and repeatedly agitated the issue during in Commercial Sub-committee meeting as well as TCC/NRPC meetings. But, even after assurance given during these meetings, PDD did not open the LC. Moreover, J&K has been unable to pay energy bills of Rs. 26.11 crore outstanding against PDD.
J&K has not made an outstanding payment of Rs. 1.25 crore to Northern Region Load Dispatch Center (NRLDC) billed against the AMC of SCADA/EMS system despite giving assurance for the same. Further an additional bill of Rs. 38, 13,895 had been raised for the maintenance of SCADA /EMS system after the extension of the contract for further two years. |
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