The NHPC management, agitated by the inordinate delays in realisation of the long backlog of bills, has urged the Union Power Ministry to take up the matter with the state and have warned of discontinuation of power to the State.

The NHPC chairman, Yogendra Prasad, told The Indian Express that the corporation, one of the biggest suppliers of power to the state, would be forced to stop the supply through its projects: ``I have taken up the matter with the Central ministry so that the state government is directed to release the pending payment. Otherwise, we will be forced to stop power to the State,'' Prasad warned.

But state government officials don't seem to be substantially influenced by Prasad's threat. Additional ChiefSecretary (Power), S L Sailova, refused to comment on the controversy saying he was not in the least knowledgeable about the issue. Another senior Power Development Department (PDD) official laughed away the threat.

``They won't dare to do that.'' But, when asked why the government was not clearing the bills he curtly replied. ``Where is the money!''

Sources in NHPC said that out of the Rs 125 crore, which the state owes to the Corporation, cheques amounting to Rs 86.87 crore issued by the PDD are lying unrealised due to financial crunch in the State. The cheques are: Rs 9.08 crores of December 8, 1997, Rs 13.39 crores of February 4, 1998, Rs 25.65 crores, Rs 78 lakhs, Rs 11.48 crores and Rs 12.72 crores of May 9, 1998 and 13.76 crores of June 12. The cheques were in lieu for the power supplied from Tanakpur (Uttar Pradesh), Uri and Salal power projects in Jammu & Kashmir.

Sources said the Corporation officials wrote a letter to the state finance department about the pending cheques in February thisyear but no action had been taken by the government. Besides, these unrealised cheques, pending bills for May and June this year amounting to more than Rs 40 crore are still awaiting clearance by the government.

Added cause for worry to the Corporation officials is the fact that public sector undertakings in the power sector including NHPC are going through an acute financial crisis. ``This is absolutely unjustified. They have been dilly dallying on payments and we have never retaliated and ensured smooth supply of power to the state despite the fact that we are going through a very rough financial phase,'' a senior corporation official commented.

What has further irked the corporation is the unwillingness on part of the PDD to open a Letter of Credit (LC) in a nationalised bank. This despite the fact that the Union Cabinet in October, 1996 especially took notice of the defaulting states and directed that future supply of power by central power sectors utilised should only be against payment orirrevocable LC.

Corporation officials have pleaded to the PDD for opening of LC but nothing has been done in that regard. ``We have carried out frequent correspondence with the PDD for opening of LC but as of date nothing has been done,'' Prasad said.

Surprisingly, officials pointed out, the cheques issued in favour of NHPC remained unrealised despite the fact that a budgetary provision towards the power sector by the government to the tune of about Rs 450 crore for 1997-98 had been made.