NTPC issues notice to curtail power to JKPDD

NTPC Limited has issued a notice to the Jammu & Kashmir Power Development Department to curtail power supply for not clearing dues worth Rs 19.85 billion. Of the total outstanding dues, as much as Rs 16.26 billion is outstanding for more than 60 days with some pending for almost a year. NTPC supplies about 940 MW of power to Jammu & Kashmir. NTPC had issued similar notices to Telangana, Karnataka and Andhra Pradesh in February 2019. An increase in receivables, coupled with Rs 2.8 billion under-recoveries in the first three quarters of 2018-19 due to coal shortage, is putting additional pressure on NTPC’s financial performance.