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UPSMA asks UPPCL to Clear Power Generation Bill of Rs. 1300 Crore

Source: TOI | 22 June, 2020 | 12:58 PM

A day after the state government cleared Rs 418 crore dues of cane farmers, the Uttar Pradesh State Sugar Millers Association (UPSMA) has started a fresh bid to realize the payment of Rs 1300 crore from the UP Power Corporation for power co-generation. The UPPCL buys the electricity generated by sugar mills and sells it to consumers.

The UPSMA has petitioned UPPCL chairman and the chief secretary several times in the past one year to draw their attention towards the delay, but they have failed to get any response.

Reported by TOI, UPSMA secretary General Deepak Guptara told that they would make a fresh effort in this direction to extract their dues from the power corporation. In the fresh petition to the UPPCL chairman, UPSMA has explained how the sugar industry was already a facing hardship due to the lockdown causing a sharp declining in demand in the local markets and export.

“At the time of signing of PPAs (power purchase agreements) and promotion for producing power in co-generation with sugar mills to reduce the power generation demand, the state government evinces a keen interest but when comes to payment, it turns its back.

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We cannot sell the power generated in mills to the private players as it is mandatory to sell it to the govt. sector only says a member of the UPSMA

The UPSMA member explained that their dies of Rs 1300 crore of over 60 mills was pending since February 2019 and nothing to do with the lockdown. The Center has been directing the states to clear all dues of sugar millers so that they would be able for timely payment of their dues to the cane growers, he added.

“At this period of crisis all around, if the state government does not come forward in releasing our dues, our businesses might be severely affected,” Guptara said