IL&FS Tamil Nadu Power Company Ltd. (ITPCL), an imported coal-based plant that supplies power to Tamil Nadu Generation and Distribution Corporation (Tangedco), has raised concerns over the State power utility not making payments as per the directives of the Union Ministry.
Tangedco has not been paying ITPCL on a weekly basis as per the Union Power Ministry’s directive, but only after 75 days of the invoice. The amount involved is in the order of ₹450-500 crore for 75 days lag against the power supplied by ITPCL, a spokesperson from IL&FS Group said.
It is affecting cash flow of ITPCL, where advance payment has to be made for fuel supplies as well as meet all operating and maintenance expenses and the upkeep of plant to ensure uninterrupted supply under section 11, Electricity Act, he said.
