Reliance Power, on Monday, announced that it had
filed arbitration proceedings under the Indian Arbitration and Conciliation
Act, 1996, against 11 procurers of electricity from its 4,000 MW Krishnapatnam
Ultra Mega Power Project (UMPP) in Andhra Pradesh.
The procurers of power include four distribution
companies in Andhra Pradesh, five in Karnataka and one each in Maharashtra and Tamil Nadu.
In a statement issued here, the company said the
‘Statement of claim’ has cited relevant clauses under the power purchase
agreement (PPA) signed between Coastal Andhra Power Ltd (CAPL), the
wholly-owned subsidiary of Reliance Power Ltd (RPL) and procurers comprising 11
state distribution companies in four States. The PPA provides for resolution of
disputes by arbitration under the Indian Arbitration and Conciliation Act,
1996.
CAPL has already sent a dispute resolution notice
on March 13, for an amicable solution under the PPA between the parties. The
procurers had not responded to the notice. Monday’s filing is in continuation
of the same.
CAPL has said that the change in regulations in
Indonesia, which is beyond its control has impacted all imported coal fired
projects in India with nearly 15,000 MW capacity involving an investment of
nearly Rs.75,000 crore.
Earlier, on a petition filed by Coastal Andhra
Power Ltd (CAPL), the Delhi High Court has passed an order directing that no
coercive steps shall be taken against CAPL by the procurers of Krishnapatnam
UMPP. The matter is before Delhi High Court.
The companies that have been impacted had appealed
to the government to permit them to increase power tariffs from the affected
plants. The government has asked the producers and the procurers to resolve the
matter bilaterally.
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