Welcome to official website of PRES

IPPs demand payment from NTDC

The eight independent power producers (IPPs), which got relief from the Supreme Court after the government’s failure to honour its sovereign guarantees, have asked the National Transmission and Despatch Company (NTDC) to make payments as per court orders to avoid contempt of court.

Sources at the Ministry of Water and Power confirmed receiving letters addressed to the NTDC on August 17 from the IPPS. The letter said that the Supreme Court in its order dated August 15 had directed the government and NTDC to make the current payments of the eight IPPs according to the power purchase agreement.

These payments would be in addition to Rs 44.938 billion that the government admitted it owed to the IPPs. The purpose of the separate stream of the above two payments is to reduce the outstanding balance of 44.938 billion through payment of arrears in installments and ensure that the new overdue balance does not add to the amount of exiting arrears by making the full payment of the entire current billing.

In this view, one of the IPPs had pointed out to the NTDC that Rs 1.6 billion was due after July 13, 2012, according to the power purchase agreement. In addition, the amount claimed therein was to be paid on or before the thirtieth (30th) day following the day the invoice is received by the power purchaser. Furthermore, the Rs 1.6 billion being claimed by the IPPs had become due from July 13 to August 1.

These payments are to be cleared immediately as per court order, as any delay will cause an increase in the amount of existing arrears of 44.938 billion, which is a clear violation of the court’s orders.

Interestingly, several sources in the Ministry of Water and Power have confirmed the receipt of such letters. The NTDC, however, has neither responded to the letters nor paid the IPP’s overdue amount.

Comments are closed.