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Rs 4,200 crore dues from states worry Neyveli Lignite

Published: 26th April 2013 09:21 AM  |   Last Updated: 26th April 2013 09:32 AM   |  A+A-

Neyveli Lignite Corporation (NLC) has sent a letter to the Southern Region Power Committee seeking measures to recover the Rs 4,200 crore payment dues from power companies of southern states of Andhra Pradesh, Karnataka, Kerala and Tamil Nadu, as well as the Union Territory of Puducherry.

Neyveli Lignite Corporationadministration, in the letter, said as the reduction in the cash inflow due to default in payments by the power companies was adversely impacting the funding of on going projects.

According to the letter send by S Ravi Shankar, NLC’s deputy general manager (commercial), the state power companies, while clearing dues, had been giving first priority to central public sector unit power companies like NTPC and NPCIL, leaving huge outstanding dues with Neyveli Lignite Corporation.

As per the letter, Andhra Pradesh has an outstanding due of Rs 243 crore, Karnataka -- Rs 211 crore, Kerala -- Rs 115 crore, Tamil Nadu Rs 3,505 crore, and Puducherry -- Rs 85 crore, from June 2012 to March 2013.

NLC said as per the record of Central Electricity Authority, Tamil Nadu Generation and Distribution Corporation’s (TANGEDCO) total outstanding dues with public sector unit power generators was Rs 3,791.45 crore, of which, dues to NLC is Rs 3,438.43 crore, as on November 2012.

Several letters highlighting the outstanding dues were sent to the Chief Secretary of Tamil Nadu and chairman of Tamil Nadu Generation and Distribution Corporation’sand despite the matter being taken up by the Ministry of Coal, no action has been taken, said the letter that was sent recently.

However, NLC officials said the matter was raised in the power grid commercial committee meeting and companies were pressured to take measures to clear the dues immediately.

In the meantime, a TANGEDCO’s financial department official said Rs 1,000 crore was paid in first phase, after a letter from NLC was received in March. The remaining dues would be cleared gradually, based on the financial position of TANGEDCO, the official added.

NLC supplies 2,490 MW power from its three power plants -- NLC phase I, II and I Expansion -- to four States and one union territory, as follows: 1,234 MW for Tamil Nadu, 291 MW for Karnataka, 277 for AP, 212 MW for Kerala and 93 MW for Puducherry power.



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