Unpaid dues cause Aravali Power to threaten power supply cut in Delhi

Aravali Power Company Pvt Ltd has threatened to cut power supply to the Delhi based distribution companies if the Letter of Credit was not renewed.

According to APCPL , both BRPL as well as BYPL have failed to keep up with the Letter of Credit stipulations of the PPAs signed by them. In consequence, APCPL, as per the agreement, now has the authority to regulate power if its dues are not repaid, and LCs not renewed on time.

After earlier landing in trouble with NTPC Limited over the issue of non payment of dues, the Anil Ambani promoted BSES Rajdhani Power Limited and BSES Yamuna Power Limited are now faced with a similar situation with Aravali Power.

Aravali Power has the authority to terminate the agreement if the companies do not remedy the default.   

The total amount outstanding, after encashing the LCs of both discoms to APCPL  is Rs. 65.14 crore.

Aravali Power supplies 102 MW of power to BRPL and 64 MW to BYPL. If BSES fails to act and salvage the
situation, the regulation of power is likely cause at least some flutter in the capital region.