SC directs NTPC not to cut power supply to two BSES distribution companies

SC directs NTPC not to cut power supply to two BSES distribution companies The Supreme Court of India has directed state-run power generation company National Thermal Power Corporation (NTPC) not to discontinue supply of electricity to private-sector power distribution companies BSES Rajdhand and BSES Yamuna in Delhi until next hearing on March 26, 2014.

The bench consisting of Justices S S Nijjar and A K Sikri said Delhi should not be made to suffer due to the payment dispute between NTPC and BSES. The BSES' subsidiaries supply electricity to nearly 70 per cent of the national capital.

After hearing the two sides, the bench ruled, "We have to look after the people of Delhi; the consumers should not suffer. This is not the right attitude to take."

The apex court also directed the two discoms to pay NTPC Rs 50 crore within two weeks against the dues demanded by it. The Reliance Group-owned power distribution companies had moved urgent writ petitions after the government-owned NTPC threatened that it would cut off power by Monday midnight in case dues are not settled.

On Wednesday, the two discoms had asked Delhi's power department that to immediately pay pending subsidy of Rs 262 crore so that they could pay off their dues to the NTPC. It was seen as an attempt to shift the onus of ensuring the continuance of power supply in the city on to the APP government,   which had previously threatened that it could revoke BSES' licenses.

NTPC had said BSES companies owed it Rs 96 crore and it was suffering due to that.  But, the court pointed out that it would not get the money by cutting electricity.