In a landmark development, 24 states signed a tripartite agreement on Thursday with the Centre and reserve Bank of India to clear dues worth Rs 37,400 crore (Rs 374 billion) of central power PSUs like NTPC, under a one-time settlement scheme.

National Thermal Power Corporation will be biggest beneficiary of the move as the corporation will get about Rs 19,000 crore (net of surcharge waiver) through bonds to be issued by the states in favour of central power PSUs.

The total outstanding of state electricity boards towards power PSUs like NTPC, NHPC, PGCIL and coal PSUs, up to September 30, 2001 stood at Rs 37,400 crore.

"This will benefit not only us but the SEBs also. As the state sector is responsible for nearly 70 per cent of the power generation, clearing of old dues will provide a leverage to the SEBs to finance their projects further," NTPC chief C P Jain told reporters after the agreement was signed.

For dues after September 2001 totalling about Rs 3000 crore (Rs 30 billion), Jain said the corporation has entered into an agreement with most of the states and the dues were likely to be cleared soon.