New Delhi: NTPC, country’s largest power generator, will regulate power supply to Jammu & Kashmir (J&K) for not clearing Rs 1,985 crore dues. The company has asked the state to clear the pending dues or face blackout.

Of the 1,985 crore, Rs 1,626 crore dues are outstanding for more than 60 days, a company official said.

NTPC has been supplying about 940 megawatt (MW) power to the state from various power stations. “For more than two years now, the payment from J&K has been irregular and as on date the outstanding dues of NTPC have reached a staggering Rs 1,985 crore,” the official said. Jammu & Kashmir electricity demand is about 1,950 MW. 

He said that the company has been following up at various levels with power department of the state for realisation of payments. “However, there has been no significant improvement in payment position,” he added.

NTPC had last week issued similar notices to Telengana, Karnataka and Andhra Pradesh. According to three separate notices issued to the power distribution companies, nearly Rs 4,138 crore is due for over 60 days and as per the power regulator Central Electricity Regulatory Commission's (CERC's) guidelines, the generators can serve notice for regulation of power to defaulters.

In the notices, NTPC had asked the states to pay the total amount. These dues include bills pending for supply of solar as well as thermal power by NTPC.

NTPC cited the CERC guidelines on regulation of power supply. It said: "In case of outstanding dues or in case the required letter of credit or any other agreed payment security mechanism is not maintained as per the agreement, the generating company may serve a notice for regulation of power supply on the defaulting entity, for reducing the drawl schedule.”