Chief Minister Bhupesh Baghel called on Union Power Minister R K Singh, on Wednesday, to recognize Chhattisgarh State Power Distribution Company Limited (CSPDCL) as an Independent Power Producer (IPP) to facilitate payment of Rs 2,000 Crores outstanding fees to the Telangana State Power Company.
In his letter, the Chief Minister informed the Union Minister that, on 22 September 2015, Telangana was continuously supplying power under a long-term PPA between CSPDCL and Telangana State Power Corporations for power supply from a capacity of 1000 MW Atal Bihari Thermal Power Project (Madwa) established under the state sector in Chhattisgarh.
He further stated that payment of fees of more than Rs 2,000 crore is due on 31 March 2020 to the power company of the State of Telangana, as a result of which CSPDCL is under financial stress.
The Chief Minister also welcomed the efforts made by the Union Power Minister to save the power sector from the impact of the COVID-19 pandemic.
Baghel argued that independent power, including the Central Power Generation and Transmission Corporation through REC Limited and PFC Limited, would include the state power sector and the Special Long Term Transaction Loan Scheme under the 'India Self-Reliant Campaign' announced by the Government of India.
"A provision has been made to provide loans to the power distribution companies for payment of outstanding dues to the producer and renewable energy sources," he said.
In a letter issued by PFC Limited, the Chief Minister stated that he would obtain a loan as part of a special long-term transaction loan to Discom for Covid-19, CPSU Genco and Transco.
"IPPs and Re-generators as on March 31, 2020, the provision of loans to power companies has been made for the payment of outstanding bills. Due to this, the power companies of Telangana state are not eligible for a loan for payment of the outstanding power dues of Chhattisgarh State Power Distribution Company, as CSPDCL is not in the category of IPP," read the letter.
In view of the financial stress of Chhattisgarh State Power Distribution Company Limited, Baghel requested the Union Minister to consider as soon as possible the loan application submitted by the power companies of Telangana State to REC Limited and to recognize Chhattisgarh State Power Distribution Company Limited as an Independent Power Producer so as to allow the Telangana State Power Company to do so.
