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Wednesday, 5 February 2014
A move to block Arvind Kejriwal from cancelling power firms' licenses
Wednesday, 5 February 2014 by Unknown
New Delhi: Delhi Chief Minister Arvind Kejriwal has asked the region's power
regulator to revoke the licences of two electricity distributors if they fail to
supply power, drawing criticism from the companies.
The distributors are BSES Yamuna Power Ltd and BSES Rajdhani Power Ltd,
run by billionaire Anil Ambani's Reliance Infrastructure Ltd. But today, a
tribunal said the firms' licenses cannot be revoked without its permission.
"Anil Ambani playing politics wid delhi's electricity? Whose politics is he
doing?," Mr Kejriwal tweeted last evening.
Reliance responded with a statement that said the group is "extremely
disappointed with the Delhi Chief Minister's tweet attacking our Group
Chairman."
The Reliance-backed companies have been warned by the Delhi government
that they must clear their bills with power providers and cannot threaten the
city with large blackouts on account of a cash crunch. Reliance Infrastructure
runs the distribution companies, with the Delhi government holding a 49%
stake.
In the event of the licenses being revoked, "suitable officers" would be
appointed to administer the distribution companies and keep power switched
on, the government has said.
State-run power producer NTPC has said that BSES Yamuna Power, which
sells electricity in the central and eastern parts, must pay its bills or be cut
off from February 11.
BSES Yamuna Power has already expressed its inability to pay state-run
power generation companies citing lower tariffs and a shortfall in revenues.
The row could result in outages of up to 10 hours a day, it had warned,
provoking Mr Kejriwal to allege "blackmail."
The distributors contend that the regulator has failed to increase power tariffs
in line with the rising cost of power, leading to a revenue loss of more than
Rs. 15000 crore.

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