The BSES discoms are in for some tough time as Delhi Power Minister Satyendar Jain on Wednesday asserted that the Aam Aadmi Party (AAP) government will not extend any Letter of Comfort (LoC) to the power companies.
Mr Jain insisted that the government has nothing to do with the discoms seeking loans from banks. “I asked senior officials like the Additional Deputy Comptroller Auditor General what is LoC, and most told us that it is a ‘guarantee’. We do not want to be liable to any company,” he said while inaugurating a sub-station of BSES Rajdhani Power limited at Najafgarh,
When asked about the previous two occasions when the Delhi Government had given the LoC to power companies, Mr Jain said, “What happened in the previous government would not happen in the present one. Mistakes should not be repeated. Besides, I want to make it clear that no officer can approve the LoC... Only the government can do it.”
He further said that the government is trying to change the long-term power purchase agreements which are highly expensive. “A White Paper on this is being prepared where such agreements in the past 13 years are being revisited,” he said.
On the rising power demand in the Capital during summers, Mr Jain said unannounced and unplanned power outages will not be tolerated and if complaints are received, the discoms will be slapped with penalty. The maximum power requirement during summer months is expected to be 6500 MW.
The discoms have made the necessary arrangements.
The Power Minister said that some temporary measures will have to be taken to avoid power outages caused by increased load in the peak hours of summer.
One-time settlement
Mr. Jain also informed that the government was working on one-time settlement of power dues and all three discoms have agreed on extending such a facility.
