Reliance Power applies for hike in Sasan tariff on higher overheads
The move by Reliance Power puts a spanner in the works for the power ministry’s ambitious UMPP programme, wherein developers quoting the lowest tariffs through the competitive bidding were handed out large-sized projects, with pre-project clearances having already been carried out by government agencies prior to the award. Reliance Power, which had bagged three UMPPs, had earlier in mid-2011 stopped work on its Krishnapatnam UMPP in Andhra Pradesh invoking the ‘force majeure’ clause.
Reliance Power, in its petition, has invoked Article 13.2 of the PPA (read with Section 79(1)(b) of the Electricity Act, 2003) seeking certain reliefs to “recoup/adjust” the project economics for certain “changes in law”, including an increase in water charges by the Water Resources Department of Madhya Pradesh (notification dated 21.4.2010), an increase in the rate of royalty on coal by the Union Coal Ministry (notification dated May 10, 2012), levy of ‘clean energy cess’ by the Union Government in the Finance Act, 2010 (Notification dated June 22, 2010 issued by the Ministry of Finance).
Reliance Power has also cited the imposition of excise duty on coal by the Centre in the Finance Act, 2012 (with effect from April 1,2012),
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