Instead of issuing bonds by SEBs backed by state government guarantees and 15 per cent Central appropriations, NTPC wants the issue of bonds done through special purpose vehicles (SPV) created by power central public sector units (CPSUs) instead of SEBs.

NTPC sources told The Financial Express that if this proposal is accepted, it would hope to recover nearly Rs 7,000 crore of the total principal of Rs 9,782.95 crore within the next four to five years. However, Central appropriation of some of the states for the next 12 to 15 years would be diverted to the SPV for servicing the bonds, closing this avenue for realisation of its current dues.

NTPC sources said it also means that even after exhausting available Central appropriations of next 15 years by securitisation, a substantial sum of the principal and the entire surcharge may not be recovered.

"We have to, therefore, look for alternatives to realise our current energy sales and with the present financial health of defaulting SEBs, we find ourselves at a very critical juncture," sources added.

They said recovery of dues though continues to remain a pressing issue. NTPC chairman CP Jain has asked regional heads to give priority for the recovery of dues and "try to stop further accumulation of unpaid dues as this would ultimately determine success or failure of NTPC in future."

On the tarrifs of NTPC fixed by the Central Electricity Regulatory Commission (CERC), the NTPC has challenged the availability-based tariff order of CERC as it would have a significant impact on its profitability, if implemented.

The NTPC chairman has said that savings in heat rate, auxiliary consumption and fuel oil, the direct cash outflow for this marginal unit of supply would be almost 95 of the billing. "If this remains unpaid and is realised after five to six years, you could easily work out the present value of this money, which means substantial financial loss to the organisation due to this unpaid supply of power," he opined.

According to him, in a two-part tariff, any supply made beyond the threshold is billed only at fuel cost.

Mr Jain said the NTPC's generation and supply strategies should be in such a way that financial resources do not get locked up. The NTPC's long-term commercial interests would be the criterion of every functional strategy.