The coal-based Udupi Power Corporation Limited (UPCL) thermal power project at Yermal in Padubidri has shut down since August 12.
Financial crunch and coal shortage are said to be the reasons behind shut down, highly placed sources said.
The power distribution companies, including Hescom, Mescom, Gescom, Cesc and Bescom are yet to pay Rs 2,800 crore to the company for the electricity purchased. The Late Payment Surcharge (LPS) is being assessed. Hescom has to pay Rs 1,800 crore.
According to sources, the Central Electricity Regulatory Commission had even directed these power distribution companies to pay the remaining amount and the monthly interest rate was set at Rs 35 crore.
The company generally imports coal from Singapore and Indonesia. Owing to the financial crisis, the power plant was forced to shut down, the sources added. Mescom receives only 5% of the total power generated and Bescom gets 50% of total power generated here.
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