Defaulting NHPC clients to buy power through the exchanges

NHPC will ask its defaulting clients to buy electricity through the power exchange to avoid a pile of defaulted payments.

The utility wanyted tol avoid directly dealing with counter buyers not paying up for the power on time.

The resolution has been passed in view of the recent development of beneficiaries defaulting on payment of power even though there has been no problem in power allocation to such entities.

As per the information provided to the NHPC Board, the arrears on account of tariff revision for the period 2009-14 have accumulated in spite of various follow ups.

In an effort to promote speedy recovery of dues from beneficiaries, an action plan entailing regulation of power supply, in phases, to the defaulting entities and subsequently allowing the power major to sell diverted power through the power exchange, had been forwarded earlier to the Ministry of Power.

The NHPC Board had decided to take the matter into its own hands and grant approval for necessary measures that will help safeguard NHPC`s financial interests.