An official release from the company says the decision has been taken as the defaulting SEBs have come forward to negotiate a new payment arrangement.However at the same time, the caveat that the deferment is subject to the fulfillment of commitments, and in case these are not honoured it may be necessary to proceed with regulation of power supply.

Orissa has agreed to increase the monthly payment by letter of credit to Rs 40 crore from Rs 32 crore immediately and to the level of full current billing within two months. Orissa has also agreed to furnish a time-bound action plan which will not exceed two years for liquidation of outstanding dues in September. The agreement will incorporate the manner of liquidation of arrears by way of allotment of bonds or by way of equatedmonthly installments.

The Bihar State Electricity Board has agreed to immediately release Rs 75 crore as down payment towards liquidation of arrears. It will enhance the letter of credit to Rs 40 crore from Rs 25 crore within a month and increase payment to full value of current billing by October this year. Outstanding dues will be liquidated within the next 24 months for which a detailed plan will be submitted by BSEB by next month.

Damodar Valley Corporation has agreed to maintain the LC at the required level as per the central government tariff notification of arrears. DVC will release 50 per cent of the net amount received by them through the central appropriation during the year 1999-2000 onwards.

The Delhi Vidyut Board has agreed to maintain LC to cover full monthly supplies. In case the billing in any month is lower than the LC amount, DVB will ensure full LC payment and the excess amount will be adjusted towards arrears. DVB will pay Rs 25 crore per month towards arrears with effect fromOctober. This rate of liquidation will be reviewed subsequently for upward revision.

West Bengal will immediately make a down payment of Rs 25 crore and a further payment of Rs 25 crore this month towards arrears of NTPC. The LC will be enhanced to Rs 25 crore from Rs 20 crore this month. And it will be enhanced to Rs 30 crore in September this year and to the level of full current billing in December. Till then WBSEB will pay an additional Rs 5 crore per month towards current dues. For the balance arrears a mutually acceptable liquidation plan will be worked out within a month.

The repayment schedule with the Uttar Pradesh sate electricity board and the UP government is underway. With Sikkim, NTPC is negotiating a down payment of Rs 2 crore and discussions are on to liquidate the rest of the arrears.