Jammu & Kashmir Rajasthan and Telengana face blackouts as their distribution companies have either not opened the bank guarantees backing power purchases or put conditions on generators for invoking them.Experts said if implemented in letter and spirit, the Centre's directive to stop power supply without payment guarantee from August 1 will transform the ailing power sector.Interpreting the order differently, Uttar Pradesh has opened bank guarantees in favour of power plants outside the state. Four major plants – Reliance Power ’s Rosa, Lalitpur Generation Company, Lanco’s Anpara-C and Prayagraj Power that has been bought over by Resurgent Power – have been left out by the state, sources said.Rajasthan and Telengana have opened conditional letters of credit in favour of power plants. In case of non-payment by discoms of these states, the generators can invoke the letters of credit only if they are authorised by the state government. It was not clear if such conditional letters of credit can be considered to be in line with the Centre’s directive issued on June 28.According to a directive by the power ministry, the distribution companies had to open the bank guarantees to power plants by Wednesday to avoid outages.“The power ministry’s directive was issued to set right defaulting discoms. However, if we have to run to the discoms to invoke LC for their default, it defeats the purpose of the power ministry’s order,” said an executive with a private firm.Power distribution companies in most states, except Jammu & Kashmir, have opened bank guarantees for a week or 10 days in favour of private and central power plants. However, continuity in power supply depends on the discoms adding more money after a week. “Only Jammu & Kahsmir had not opened the bank guarantee. However, it has not refused the order and is in the process of opening the LC,” a senior government official said.Also, state governments have ducked some power plants including renewable energy in giving the guarantees. For example, Uttar Pradesh has given bank guarantees to power projects outside the state. Gujarat discoms have not given the letter of credit to Essar Power’s Salaya plant as its power purchase agreement does not have such provision.Tamil Nadu discoms have also been selective, while Kerala discoms have some technical issues with certain new plants, which are likely to be resolved in a day or two, sources said.“A bold step of the central government, which was necessary for viability, accountability and credit worthiness of power sector,” said Central Electricity Authority former chairperson Ravinder.