Indian power firm, Damodar Valley Corp., (DVC) has agreed to resume its supply of power to Madhya Pradesh Power Management Co., (MPPMC) after it initially suspended power supply following a dispute over unpaid dues.
DVC had claimed MPPMC had allowed overdue payments to mount to Rs 800 crore. But has now agreed to resume power service once the coal stock in its coal-fired power plants improves.
The decision followed an assurance from the state-run distribution company of clearing the outstanding in tranches.
“Following a recent talk between DVC and officials of the Madhya Pradesh Power Managament Co., the utility has agreed to clear the dues in tranches and has already paid Rs 100 crore. Rest of the dues will be cleared over the next few months," a DVC official said, requesting anonymity. "We will start supplying power to Madhya Pradesh as soon as coal stock in power plants improves."
According to the Economic Times, as yet, coal stocks in Kolkata-based DVC’s three power plants are barely sufficient for two to three days. These units cannot increase generation unless the fuel supply improves.
DVC had been supplying 500 MW in power to Madhya Pradesh that was first reduced and then completely stopped late last month. The units 5 and 6 of DVC's Mejia thermal coal-fired power plant supplied about 200 MW, as did its Chandrapura thermal power plant, while DVC's Durgapur thermal power plant contributed the rest.
According to data provided by the National Load Despatch Centre, demand in Madhya Pradesh ranges between 6000 MW and 7500 MW. The state has not reported any shortfall in power supply during the peak period, even after DVC completely snapped supply.
DVC's total dues from utilities stand at Rs 7700 crore, of which the Jharkhand state utilities owe about Rs 5000 crore, BSES Yamuna and BSES Rajdhani about Rs. 1000 crore, Madhya Pradesh now owes about Rs 700 crore and a number of small companies in West Bengal account for the rest.
Edited from various sources by Sam Dodson
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