Mohinder Verma
JAMMU, Sept 16: As the Finance Department has expressed its ‘inability’ to release adequate funds, there seems to be no end to the embarrassing situation for the Power Development Department before the Central Electricity Regulatory Commission (CERC) over the liquidation of Rs 473.59 crore outstanding Unscheduled Interchanges (UI) charges. In the latest development, the CERC has warned to impose personal penalty on the officers in case the PDD fails to clear the outstanding amount by September 25, 2012.
Official sources told EXCELSIOR that due to drawl of energy beyond the fixed schedule and non-clearance of Unscheduled Interchanges (UI) charges during the period between 2002 and 2011, the liability in the shape of UI charges and interest amount on the same got accumulated to over Rs 500 crore prompting the Central Electricity Regulatory Commission (CERC) to take cognizance of the situation.
When the matter was listed for hearing before the CERC in the month of July this year, the Power Development Department made request for liquidation of outstanding UI charges in installments. However, the CERC vide its order dated July 23, 2012 observed, “the request for payment in installments will result in accumulation of interest and put additional burden on the State”, sources said.
Keeping in view the interest of Power Development Department to liquidate the outstanding dues along with interest at the earliest, the CERC issued directions for filing on affidavit the payment plan to liquidate the outstanding UI dues along with interest by August 3, 2012, sources said, adding when the matter again came up for hearing before the CERC, the counsel for the Power Development Department sought three weeks time to file the payment plan for liquidation of outstanding UI dues along with interest, which was allowed by the CERC and the matter was fixed for hearing on September 6, 2012.
During the course of hearing on September 6, the counsel for PDD submitted that the matter was under discussion by the PDD with the Finance Department. With these submissions, he sought four weeks time to file the payment plan to liquidate the outstanding UI dues along with interest.
During the hearing, the CERC came to know from the Northern Region Load Dispatch Centre (NRLDC) that as on September 3, 2012, the Power Development Department of J&K made a payment of Rs 29.50 crore and an amount of Rs 473.59 crore was still outstanding against the Jammu and Kashmir.
Taking serious note of PDD’s failure to strictly comply with its directives, the CERC bench comprising S Jayaraman, V S Verma and M Deena Dayalan observed, “the respondents (PDD of J&K) have not furnished the payment plan as assured during the hearing on July 10, 2012. We are constrained to note that the respondents are not paying due attention to the payment of outstanding UI charges”.
“We have emphasized time and again that UI is a pool account and amount payable by one constituent are receivable by other constituents. Any default on the part of the single constituent deprives the other constituents of their legitimate dues”, the CERC bench said, adding “we are not inclined to allow further time to the respondents to liquidate the outstanding UI dues”.
With these observations, the CERC directed the top brass of the Power Development Department to ensure payment of outstanding dues by September 25, 2012 failing which they would be liable for personal penalty for non-compliance of the Commission’s order.
Sources said that though several rounds of discussion between the PDD and Finance Department was held over the clearance of UI charges yet no fruitful result came out of the same till date.
“The Finance Department is expressing its inability to release the funds despite the fact that PDD is facing embarrassing situation before the CERC”, sources said and hoped that Chief Minister, Omar Abdullah, who is also holding the power portfolio, will immediately intervene and convene joint meeting of Finance and Power Development Department to find way out to avoid peculiar situation before the CERC, which has fixed September 27, 2012 as next date of hearing.
In the latest hearing before the CERC, Vikas Sharma and Sanjay Sharma represented the Power Development Department and Neeraj Kumar and Jyoti Prasad represented Northern Region Load Dispatch Centre (NRLDC). Advocate Shashank K Lal was the counsel for the Power Development Department.
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