Andhra, Telangana, Karnataka Can Plunge Into Darkness; NTPC Threatens To Cut Power Over Rs 4000 Cr Dues

This is Election year, and such power cuts can spoil the political party.

Power cuts for AP, Telangana, Karnataka?
Power cuts for AP, Telangana, Karnataka?

Bad news for citizens of Andhra Pradesh, Karnataka and Telangana: Your electric power may soon disrupt, and regular load shedding can be the ordeal in coming days.

The reason: Your state governments haven’t yet paid the electricity bill!

Uttar Pradesh is next.

Power Cut For Karnataka, Telangana, Andhra Pradesh?

State-owned electric power generation company: National Thermal Power Corporation Limited has issued warnings to three Southern states over unpaid dues.

These three states are: Andhra Pradesh, Telangana and Karnataka.

NTPC has issued a threat that power supply to these three states can be cut in the coming days. As per the protocols, power cuts will start in a week or so (February 9th, to be precise), and will continue to three months, in case dues are not cleared.

States Didn’t Pay Electricity Bills?

As of February 1st, NTPC owes Rs 7859 crore from various states.

Out of which, the biggest amounts which are unsettled belongs to Jammu & Kashmir; UP; Telangana, Karnataka and Andhra Pradesh.

Rs 4890 crore dues are pending with the three Southen states: Telangana, Karnataka and Andhra Pradesh, due to which, NTPC can cut the power supply.

UP is next: If the dues are not cleared, then NTPC may cut power supply to UP as well, the state from where PM Modi won elections, and BJP is ruling right now.

NTPC has issued notices to these three states, based on the CERC (Regulation of power supply) Regulations, 2010.

The rule states, “In case of the outstanding dues or in case the required letter of credit or any other agreed payment security mechanism is not maintained as per the agreement, the generating company may serve a notice for regulation of power supply, on the defaulting entity, for reducing the drawl schedule.”

Notices have been issued to these three Southern states, as they haven’t paid a single penny since last two months.

Why This Is A Bad News For Political Parties?

Elections are due in the month of March, April, and if electricity is any state is cut and regulated, then it will cast a very negative impression on the voters.

High price of onions in 1998 is argued to be the reason why BJP led NDA Govt. lost, and the price skyrocketed weeks before the elections. In case electricity is regulated in the states of Telangana, Karnataka and Andhra Pradesh and even UP, then it can spell doom for the political parties.

Uttar Pradesh, where BJP recently won the mandate, has the highest dues of Rs 6127 crore. After the Southern states, UP will be the state to get the notice.

Rajasthan has dues of Rs 2404 crore, Punjab needs to pay Rs 1041 crore.

Power Distribution Companies Are Helpless

Power distribution companies have incurred huge losses in recent months, for fulfilling promises made by the respective State Govts.

Ujjwal DISCOM Assurance Yojana (UDAY) was created to help these companies, but still, nothing has changed.  Telangana had incurred loss to the tune of Rs 8,904 crore, Karnataka lost Rs 804 crore and Uttar Pradesh had the highest losses — Rs 30,943 crore.

Interestingly, NTPC has issued another notice: Since they will be cutting power to several states, they will have surplus power which other states can use.

We will keep you updated, as more details come in.

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