On Wednesday, Chhattisgarh Chief Minister Bhupesh Baghel writes a letter to Union Power Minister R K Singh and urged him to recognize Chhattisgarh State Power Distribution Company Limited (CSPDCL) as an Independent Power Producer (IPP) for facilitating payment of dues of Rs 2 thousand crores pending on the Telangana State Power Company.

In his letter, the Chief Minister informed the union minister that the state of Telangana is being continuously supplied power under long term PPA executed between CSPDCL and Telangana State power companies on 22 September 2015 for power supply from 1000 MW capacity Atal Bihari Thermal Power Project (Madwa) established under State Sector in Chhattisgarh. 

He further mentioned that the payment of dues of more than Rs 2000 crore is pending on the power company of Telangana State as on 31 March 2020, due to which CSPDCL is pushed to face financial crisis.

The Chief Minister has also appreciated the efforts being made by the union power minister to save the power sector from the impact of Covid-19 pandemic. A provision has been made to provide loans to the power distribution companies for payment of outstanding dues to the producer and renewable energy sources.

“Independent power including Central Power Generation and Transmission Undertaking through REC Limited and PFC Limited through the inclusion of the power sector of the state and the Special Long Term Transaction Loan Scheme under the ‘Self-Reliant India Campaign’ announced by the Government of India.” said the Chief Minister.

The provision of loans to power companies has been made for the payment of outstanding bills as per the special long term transaction loan to Discom for Covid-19, CPSU Genco and Transco for obtaining loans to IPPs and Re-generators as on 31st March 2020. Since, Chhattisgarh State Power Distribution Company, as CSPDCL is not in the category of IPP,  the power companies of Telangana state remain un-eligible for the loan for payment of the outstanding power dues. 

So that, the Telangana State Power Company could get loan for payment of outstanding dues the Chief Minister has requested the union minister to consider the loan application submitted to REC Limited by the power companies of Telangana State as early as possible and to recognize Chhattisgarh State Power Distribution Company Limited as Independent Power Producer and free the Chhattisgarh State Power Distribution Company Limited from financial stress.