Settlement of dues of DESU period

Press Information Bureau

Government of India

Cabinet

17-January-2013 13:58 IST

The Union Cabinet today approved the following :

(i) the Non-Plan loan assistance of Rs.3264.79 crore to Government of National Capital Territory of Delhi (GNCTD) for making payment to  four Central Public Sector Undertakings (CPSUs) namely, National Thermal Power Corporation Limited (NTPC),National Hydroelectric Power Corporation Ltd. (NHPC), Powergrid Corporation of India Limited ( PGCIL)  and  Nuclear Power Corporation of India Limited (NPCIL).

(ii) Non-Plan loan assistance of Rs.61.60 crore to GNCTD for making payment to Railways; and

(iii) Writing off of Delhi Electric Supply Undertaking (DESU) period dues  amounting to Rs.9438.05 crore in respect of Badarpur Thermal Power Station (BTPS) i.e. Rs.2702.45 crore as principal amount and Rs.6735.6 crore as interest.

The terms and conditions of the loan would be decided by the Ministry of Finance, Government of India.

Background:

The erstwhile DESU was a statutory body set up under the Delhi Municipal Corporation Act, 1957. DESU was responsible for generation, transmission and distribution of electricity in the Union Territory of Delhi which was transferred to the Delhi Vidyut Board (DVB) w.e.f 24th Feb 1997. Subsequently DVB was unbundled into separate generation, transmission, distribution and holding companies under the Delhi Power Reforms Act 2000, At the time of transfer of business from DESU to DVB, the principal amount payable by DESU to the four CPSUs - namely NTPC Ltd, NHPC Ltd, PGCIL, NPCIL, BTPS then owned by the Government of India (GOI) and Railways, amounted to Rs.3855.95 crore which remains unpaid till date. The total outstanding dues along with interest in respect of CPSUs & BTPS is Rs. 12764.44 crore as on 31.12.2011.

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