This Article is From Feb 07, 2014

Supreme Court relief for power firms stalls blackouts in Delhi

Supreme Court relief for power firms stalls blackouts in Delhi

File pic: Delhi Chief Minister Arvind Kejriwal

New Delhi: The Supreme Court today stopped the central power generator from cutting electricity to two firms that distribute power to large parts of Delhi.

The court said NTPC must supply electricity till March 26 to Anil Ambani-backed BSES discoms. The firms have been to pay the corporation Rs 50 crore within two weeks.

The two firms owe about 400 crores to a state-run power producer, National Thermal Power Corporation or NTPC. (BSES distribution companies seek Rs 450 crore to overcome financial difficulties)

NTPC had threatened to stop supplying electricity to the firms, which said in their appeal to the Supreme Court that their cash crunch is due partly to long overdue payments from the Delhi government.

Chief Minister Arvind Kejriwal has alleged "blackmail" by the firms and says the power regulator for the area should cancel their licenses.  When that happens, he has said, government officials will administer the firms.

A tribunal that handles power cases in and around Delhi has said licenses cannot be revoked without its clearance, offering a measure of relief to the BSES firms. (A move to block Arvind Kejriwal from cancelling power firms' licenses)
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