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India's Delhi government moves to scrap power distribution licences

Published on Feb 4, 2014 3:34 PM
 

NEW DELHI (REUTERS) - The government of India's capital, Delhi, has asked the region's power regulator to scrap the licences of electricity distribution companies if they fail to supply power to the city.

The request is the latest muscle-flexing between the newly elected Aam Aadmi Party, which leads the government in Delhi, and two power distribution companies, BSES Yamuna Power Ltd and BSES Rajdhani Power Ltd, run by billionaire Anil Ambani's Reliance Infrastructure Ltd.

It comes two days after state-run power producer NTPC Ltd said BSES Yamuna Power, which sells electricity in the central and eastern parts of the city of about 16 million people, must clear its dues or else supplies would be cut from Feb 11.

The row could result in an outage of up to 10 hours a day, exacerbating the problems of Delhi Chief Minister Arvind Kejriwal, elected in part on a promise of cutting electricity tariffs for millions of Delhi's voters.

 
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