Telangana Discoms’ Recovery Petition Withdrawn by NTPC

Representational image. Credit: Canva

NTPC Limited had filed a petition seeking recovery of approximately ₹52 crores from the distribution companies (Discoms) of Telangana. This amount had been paid by NTPC as an intermediary procurer to various solar power developers, in relation to a claim regarding the ‘Change in Law,’ which had been permitted by the Commission.


Following a hearing on August 16, 2023, the Commission expressed strong displeasure with the conduct of the Telangana Discoms. The Discoms had failed to provide the details of their payments under GST Orders, as directed by the Commission. Despite this, the Commission decided to grant one final opportunity to the Telangana Discoms to comply with the directives, with a two-week deadline.


In response, the Telangana Discoms, through an affidavit dated August 26, 2023, stated that they were disbursing the GST payment dues and other dues of NTPC in monthly instalments, as allowed by the Electricity (Late Payment Surcharge and Related Matters) Rules, 2022. These instalments were being funded by REC and PFC.

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The Financial Advisor and Chief Controller of Accounts, TSPCC, provided the NTPC with details of payments made up to June 5, 2023, along with the outstanding balance amount. It was also conveyed that REC and PFC would release the amounts to NTPC under the LPS (Late Payment Surcharge) Rules, 2022.

Subsequently, payments totaling ₹27,12,21,813/- were made by the Telangana Discoms to NTPC on July 5, 2023. The NTPC confirmed this payment in its affidavit dated September 14, 2023, and stated that REC and PFC would release the remaining balance as per the provisions of the LPS Rules. Accordingly, the petitioner sought permission to withdraw the petition.

The Commission, considering the NTPC’s submissions, permitted the withdrawal of the petition, leading to its disposal as withdrawn.

This development marks a resolution to the dispute over the outstanding dues, with the NTPC satisfied with the payment received and the Discoms complying with the instalment disbursement process.

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Please read the document below for more.

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