Section 7(14) in Madhya Pradesh Electricity Balancing and Settlement Code, 2015
(14)All Intra State entities which had at any time during the previous quarter of the year failed to make payment of Charges for Deviation including Additional Charges for Deviation within the time specified in these regulations shall be required to open a Letter of Credit (LC) equal to 110% of its average payable weekly liability for Deviations in the previous quarter of the year, in favour of the pool account maintained by State Load Despatch Centre with a nationalised/scheduled commercial bank having branch office in Jabalpur.Provided that -(i)if any Intra State entity fails to make payment of Charges for Deviation including Additional Charges for Deviation by the time specified in these regulations during the current quarter of the year, it shall be required to open a Letter of Credit equal to 110% of weekly outstanding liability in favour of Madhya Pradesh Power Management Company Limited or State Load Despatch Centre pool account as the case may be.(ii)Letter of Credit amount shall be increased to 110% of the payable weekly liability for Deviation in any week during the quarter, if it exceeds the previous Letter of Credit amount by more than 50%.Illustration. - If the average payable weekly liability for Deviation of a intra state entity during 2009-10 is Rs. 20 crore, the intra state entity shall open Letter of Credit for Rs. 22 crore in 2010-11. If the weekly payable liability during any week in 2010-11 is Rs. 35 crore which is more than 50% of the previous quarter of the year average payable weekly liability of Rs. 30 Crore, the concerned intra state entity shall increase the LC amount to Rs. 38.5 Crore (1.1*35.0) by adding Rs. 16.5 Crore.(iii)In case of failure to pay into the "State Deviation Pool Account Fund" within the specified time of 12 days from the date of issue of statement of charges for Deviations, the State Load Despatch Centre shall be entitled to en cash the Letter of Credit of the concerned entity to the extent of the default and the concerned entity shall recoup the Letter of Credit amount within 3 days.State Reactive Account (SRA)
