Lanco Infratech, which has stopped supplying power to the Uttar Pradesh Power Corporation (UPPCL) due to mounting unpaid dues, has asked the four distribution companies of the state power utility to enter into discussions with it to “commence the process of buyout of its Anpara C plant” in Sonebhadra district of the state. It has, in parallel, sought to renegotiate the power purchase agreement (PPA) given the central government’s revised coal allocation policy.
In a petition filed before the Uttar Pradesh Electricity Regulatory Commission (UPERC) on January 28, the company had prayed for an order determining new tariff for the supply of power from the Anpara C plant to the four discoms of UPPCL, which have also been made respondents in the case along with UPPCL “till the successful completion of the buyout of the plant”.
As an alternative to the buyout, it has suggested that the state power regulator “pass an order determining new tariff for the supply of power instead of a buyout of the plant, keeping in view the viability and sustainability of the plant after taking into account the accumulated losses of the plant till date”.
The 2x600 MW Anpara C coal-fired power project was the country’s first project to be awarded under tariff-based competitive bidding in 2006 and had won the bid by quoting the lowest ever tariff of R1.91/unit.
Prior to filing the petition with UPERC, the company had also served a termination notice to the four discoms on January 24 in which it stated that “Lanco has at all times kept the buyers (discoms) as well as UPPCL abreast of the difficulties being experienced by it in performing its material obligations under the PPA on account of the changes in the coal linkage for the Anpara C plant vis-à-vis the coal linkage offered as part of project RFP (request for proposal)”.
Holding the enactment of new directives and policies by the government, especially the National Coal Distribution Policy (NCDP), responsible for its present condition, the company has stated that this “resulted in changes in the terms and conditions governing coal allocation to Anpara C project,