New Delhi: NTPC has restored power supply to Sikkim after the state’s assurance of paying the outstanding amount of Rs 89-crore in a time-bound manner, a company official said on Sunday.

From midnight of March 3, the country’s largest power producer NTPC had stopped 105 megawatts (MW) of power supply to Sikkim because of non-payment of Rs 89 crore outstanding dues. Despite the requirement of a Letter of Credit, Sikkim was not maintaining the same.

“NTPC Ltd has today (March 7) restored power supply to the state from 00:00 hours,” the official said.

Sikkim has committed to releasing the outstanding amount within the time frame of six months. It has opened a Letter of Credit (LC) and the state has paid bills for two months to NTPC, the official informed.

Also read: NTPC to snap 105 MW power supply to Sikkim for non-payment of dues

The power distribution utilities are mandated to open a Letter of Credit for getting power supply from generation firms.

NTPC, under the Ministry of Power, is India’s largest power producer. At present, the company’s installed capacity is 64,880 MW.

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