the respondents” on December 12, 2012.
“The petitioner is constrained to exercise this right to terminate the PPA in case any of its material obligations is significantly prevented, hindered or delayed or the average availability factor of the plant is less than 65% in any period of 270 consecutive days”, the petition states, adding that it is “not in a position to supply the entire capacity of contractually stipulated power to the buyers”. It has also submitted that till the time the discoms institute the payment mechanism and clear outstanding dues, it is entitled to regulate the power supply to correspond with the payments made.
Additionally, it submits that “in public interest, the company is willing to supply power to the buyers till the completion of the buyout of the plant. However, the same shall be on a tariff determined by the Commission as…in view of the changed circumstances, the petitioner is no longer able to supply power at the same rates,” adding that due to the “fundamental change in the terms and effects of the PPA…it is no longer sustainable or viable for the project to continue on the basis of the initial contemplation between the parties”.
Having said that, the petition sums up that keeping in view public interest, “The company is willing to proceed further with the project, provided the tariff is regulated by the Commission taking into account the accumulated losses to ensure that the project remains sustainable and viable.”
Pulling the plug
* Ballooning Uttar Pradesh Power Corp dues & changes in coal policy forces Lanco Infra to end PPA with Uttar Pradesh
* Lanco also prays for an order determining new tariff for supply to the 4 UP discoms till the buy-out is completed
* As an alternative to the buyout, it suggests that the state power regulator pass an order determining new tariff