Reliance Infrastructure companies to pay NTPC, avert a Delhi blackout

A blackout in New Delhi from Wednesday was avoided after group firms of Reliance Infrastructure, the Anil Ambani firm — Rajdhani Power Ltd and BSES Yamuna Power Ltd — assured NTPC that they will pay Rs900 crore arrears in instalments by March.

NTPC recalled a regulation notice it slapped on the companies following the assurance.

Reliance Infra also paid Rs80 crore as the first payment.
An amount of Rs425 crore for purchases in August will be billed from Tuesday, which will be paid by the end of this month. The rest of arrears of about Rs400 crore will be paid in six installments starting October.

NTPC supplies around 2,051 mw to the two BSES companies for distribution in Delhi.

NTPC in its notice dated August 31 had said that both BSES companies had failed to maintain the letters of credit as per their power purchase agreement (PPA).

It had asked the distribution companies to renew the letters immediately or the supply could be suspended from September 7.

As per the PPA, the companies are required to ensure availability of requisite value of letters of credit and ensure that they remain valid for all times during the entire validity of the PPA with a renewal at least 30 days before the expiry of its term, each time.

The letters of credit had expired on August 31 and the companies were given a week’s time to renew them.