Mohinder Verma
JAMMU, Nov 10: Taking serious note of J&K Government’s failure to clear the outstanding Unscheduled Interchanges (UI) charges for energy drawn in excess of fixed schedule, the Central Electricity Regulatory Authority (CERC) has directed the Union Finance Secretary to recover the amount from the Central Plan Assistance to the State and remit the money to Northern Region UI pool account if the State fails to clear Rs 427.35 crore dues by November 30, 2012.
“The outstanding dues payable by the Power Development Department of J&K Government is receivable by other constituent States and the Commission cannot permit J&K to default clearing the outstanding UI dues at the cost of interest of other States”, the Commission said in its latest order signed by its Chairperson Dr Pramod Deo and Members M Deena Dayalan, V S Verma and S Jayaraman.
“As per information received from Northern Regional Load Dispatch Centre (NRLDC), an amount of Rs 427.35 crore is outstanding with surcharge against PDD of J&K Government as on September 25, 2012”, the Commission said, adding “as repeated directions have fallen on deaf ears, the PDD, J&K is directed to deposit the entire outstanding amount in Northern Region UI pool account by November 30, 2012”.
The order further said: “If the outstanding UI dues are not paid by November 30, 2012, we direct the Finance Secretary, Government of India to recover the amount from the Central Plan Assistance to Jammu and Kashmir and remit the money to Northern Region UI pool account”.
The Commission vide its order dated July 23, 2012 had directed the State Government to file on affidavit the payment plan to liquidate the outstanding UI dues along with interest by August 3, 2012 . At that time, it was submitted before the CERC that the State Government has taken the matter very seriously and directions have been issued to all technical officers manning the SLDCs not to resort to over-drawal from the Northern Grid.
At that time, the officers representing the State Government had also requested the Commission to permit the Power Development Department to pay the entire amount of outstanding UI dues along with interest during the current financial year in 10 monthly equated installments.
However, during the course of hearing on September 6, 2012, the counsel for the respondents (J&K Government) sought four weeks time to file the payment plan to liquidate the outstanding UI dues along with interest.
In its order dated September 11, 2012, the Commission directed the PDD to ensure payment of outstanding UI dues by September 25, 2012. However, on September 24, 2012, the State Government submitted before CERC on affidavit that Finance Department has expressed its inability to earmark such a huge amount in short span of time but payment of Rs 29.50 crore each was made in the months of June and July. With these submissions, the PDD urged the CERC to permit J&K Government to liquidate the balance amount along with accumulated interest over the period of next five years.
During the course of hearing on September 27, 2012, the counsel for the respondents submitted that in compliance with Commission’s directions the PDD has submitted payment plan and sought permission to liquidate the outstanding UI amount along with interest within five years.
Taking serious note of J&K Government’s failure to clear dues, the CERC in its 4-page order issued few days back has observed, “earlier the PDD was seeking permission to clear dues in 10 monthly equated installments that too during the current financial year but now they have filed an affidavit for permission to liquidate the outstanding dues over a period of five years which cannot be granted in view of the interest of other States”.
With these observations, the Commission has directed the J&K Government to deposit the entire outstanding amount in Northern Grid UI pool account by November 30, 2012 failing which Finance Secretary shall recover the amount from the Central Plan Assistance to the State.
Accordingly, the Commission disposed of the petition.
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