The Modi government is making new efforts for timely bill payment of government power companies, under which the arrears can be paid. In order to ensure timely payment of Government Electricity Distribution Entities (DISCOMs), the Central Power Ministry has implemented a tripartite agreement (TPA) on behalf of power producer NTPC. This tripartite agreement is between the central government, the Reserve Bank of India (RBI) and the state government. Under this agreement, the dues of state power companies of Karnataka, Tamil Nadu and Jharkhand will be able to recover from the state government.
NTPC urged the central government to implement the agreement after power companies delayed dues and some discoms refused to clear overdue payments. However, this agreement is implemented only when it is very necessary because it can affect the relationship between the Center and the states.
Magma Fincorp Insider Trading Case: Poonawalla Fincorp MD Bhutada resigns, selling pressure on shares, read the whole matter
In this way NTPC will be paid dues
Under the TPA, the RBI, the Central Government through the Central Power Ministry and the State Government/Union Territory Government are involved in the agreement. After the implementation of this agreement, an amount equal to the overdue of the central bank RBI power companies will be deducted from the account of the State / Union Territory Government and then it will be paid directly to the power generating companies NTPC. RBI is the custodian of these accounts in which the amount of tax transfer by the central government is deposited.
such amount is overdue
Jharkhand’s overdue was Rs 3292 crore, Karnataka’s overdue was Rs 5240 crore and Tamil Nadu’s overdue was Rs 21555 crore at the end of August. In the case of Jharkhand, this agreement has been implemented for the payment of pending payments of 45 days or more i.e. Rs 1126 crore. Rs 1540 crore has to be recovered from Karnataka and Rs 2458 crore from Tamil Nadu. In August, Rs 714 crore has already been recovered from Jharkhand through TPA.
(Article: Anupam Chatterjee)
Get Business News ,, latest India News ,, and other breaking news on share market, investment scheme and much more on Business Khabar. Like us on Facebook, Follow us on Twitter for latest financial news and share market updates.
.