Damodar Valley Corp to suspend power supply to Madhya Pradesh

NEW DELHI: Damodar Valley Corp, a central government-controlled power generation firm, has decided to suspend power supplies to Madhya Pradesh due to repeated defaults, a move that may force power cuts on most of the state.

As on July 31, state utility Madhya Pradesh Power Management Co (MPPMC), which has been defaulting on payments since November 2013, owed Rs 595 crore to Damodar Valley Corp (DVC) even after 60 days from the date of billing, DVC told the state utility in a notice. Damodar Valley Corp supplies 500 mw of power to Madhya Pradesh. It plans to suspend power supplies to the state from midnight of August 24.

Madhya Pradesh with installed generation capacity of 4,600 mw has demand of close to 5,500-6,500 mw and DVC is one of its key suppliers. The development comes at a time when Prime Minister Narendra Modi is on an inauguration spree of power generation and transmission projects.