VISAKHAPATNAM: The Eastern Power Distribution Company of Andhra Pradesh Limited (APEPDCL) has issued a notice to the Rashtriya Ispat Nigam Limited (RINL) – Visakhapatnam Steel Plant, threatening disconnection of power services due to non-payment of electricity charges for the months of August and September 2024.
In a letter addressed to the steel plant, APEPDCL’s Superintendent Engineer of the Operation Circle, Visakhapatnam, revealed that the pending current consumption (CC) bill for August 2024 stands at Rs 44.,46,12,503, while for September, the bill has mounted to Rs 79,74,84,583. Despite a partial payment of Rs 26 crore by RINL in October against August 2024 demand, the plant has failed to clear the outstanding balance for August, prompting APEPDCL to take action.
The power utility company had earlier issued a 15-day notice on September 19 for payment of the overdue bills, cautioning that failure to do so would result in power disconnection by October 1 and 31 for the respective months. However, with RINL only making part payments, the dues remain unresolved.
The letter states that APEPDCL is grappling with severe financial strain and is unable to continue supplying electricity without the settlement of outstanding CC charges. The steel plant has now been given a final deadline of October 27, 2024, to clear the August bill; failing which, the power supply will be disconnected on October 27 evening without further notice.
This situation adds to the growing concerns about the financial health of RINL, which has been facing liquidity issues. If the power supply is cut off, it could severely impact the plant’s production capabilities, leading to significant losses.
APEPDCL has requested immediate action to avoid service disruption, stressing the importance of timely payments to ensure continued operations at the steel plant.
This fresh setback comes at a critical time for the Visakhapatnam Steel Plant, which is already grappling with multiple crises, including financial instability and production challenges. The plant has been under immense pressure due to mounting debts, a lack of working capital, and ongoing lack of clarity in privatisation talks.
