New Delhi, March 7 (PTI): NTPC has restored power supply to Sikkim after the state’s assurance of paying the outstanding amount of Rs 89-crore in a time-bound manner, a company official said on Sunday.
From midnight of March 3, the country’s largest power producer NTPC had stopped 105 megawatt (MW) of power supply to Sikkim because of non-payment of Rs 89 crore outstanding dues. Despite the requirement of a Letter of Credit, Sikkim was not maintaining the same.
"NTPC Ltd has today (March 7) restored power supply to the state from 00:00 hours," the official said.
Sikkim has committed to releasing the outstanding amount within the time frame of six months. It has opened a Letter of Credit (LC) and the state has paid bills for two months to NTPC, the official informed.
The power distribution utilities are mandated to open a Letter of Credit for getting power supply from generation firms.
NTPC, under the Ministry of Power, is India’s largest power producer. At present, the company’s installed capacity is 64,880 MW.
