Power Grid asks MeECL to clear outstanding dues of Rs 56 Cr by April 8

Syllad | The Rising MeghalayaMarch 31, 2021

The Power Grid Corporation of India Limited (PGCIL) on Wednesday served a notice to the Meghalaya Energy Corporation Limited (MeECL) that power supply will be regulated if outstanding dues of  Rs 56.89 crore are not clear by April 8.

“Accordingly, in case of failure of MeECL to clear the total outstanding dues >60 days latest by 08.04.2021, the regulation of power supply of MeECL through their long term access shall be effected…from 00.00 hrs of April 14,” Chief General Manager (Commercial) CTU, J Mazumder said in his letter to the CMD of MeECL Arunkumar Kembhavi.

The letter said power will be regulated from various power plants of NEEPCO, NHPC & NTPC from which MeECL has allocation of power under long term access, the quantum shall be in proportion of the allocation from NEEPCO, NHPC & NTPC may be decided by NERLDC based on merit order of dispatch.

MeECL is designated Inter-State Transmission System customer (DIC) who is availing Inter-state Transmission System (ISTS) network for transfer of power from various power plants located in different parts of the country to MeECL and is under obligations to make timely payment of transmission tariff and to open requisite Letter of Credit towards Payment Security Mechanism in line with the Electricity Act 2003 and provisions of CERC Regulations.

“The implementation of regulation of power supply as per our earlier notice dated January 29, 2021 was modified based on the commitment of MeECL for clearing dues but MeECL failed to comply with their own commitment.

It is, however, a matter of serious concern that MeECL is consistently failing to clear the full dues against the monthly bills raised on it towards transmission tariff despite regular follow-up by CTU and commitments by MeECL,” it said.

The letter said as a consequence, total dues of MeECL have grown to a huge amount of Rs 56.89 crore as on date, out of which an amount of Rs 46.51 crores is outstanding for 45 days (an amount of Rs 38.4 crore has crossed 60 days and an amount of Rs 26.51 crore has even crossed 90 days), based on the bills already raised by CTU.

CTU has been mandated with the responsibility of billing, collection and disbursement of transmission charges towards ISTS licenses from all the DICs.

Such huge outstanding dues as brought out above are seriously affecting the cash flows of all the ISTS Licenses and causing adverse impact on the ability to carry on as a business enterprise and to fulfill laon repayment liabilities towards creation of transmission assets, it added.