The Supreme Court on Tuesday sought reply from Jaypee Karcham Hydro Corporation (JKHCL), a part of the Rs 3,000-crore Jaypee Group, on a petition filed by PTC India seeking to prevent the former from entering into any agreement for sale of 704 mw power with any third party.
Power trading firm PTC India and JKHCL had entered into a power purchase agreement (PPA) on March 21, 2006 for sale of 704 mw to be generated from Karcham Wangtoo Hydroelectric Project to be developed by the latter in Kinnor district of Himachal Pradesh.
JKHCL is developing the 1,000- mw hydroelectric project at the cost of Rs 5,600 crore. A bench headed by Justice Altamas Kabir while issuing notice to JKHCL, observed that if the generating firm entered into any agreement for sale of power with any third party for the amount of power contracted by PTC, the same will be subject to final outcome of the petition. It also ordered listing of the matter with another similar petition filed by Lanco Amarkantak Power Pvt Ltd?s plea against Madhya Pradesh Electricity Regulatory Commission. Lanco has challenged CERC?s jurisdiction to determine the tariff between a trading licencee and a generating company.
Challenging the Delhi High Court judgment that dismissed its plea, PTC sought stay on termination of PPA by JKHCL. Besides, it wanted to restrain JKHCL from entering into any agreement for sale of power with any other party.
PTC submitted that if JKHCL was not restrained from creating third part rights, the same will adversely affect power sale agreements that it had entered with several purchasers ? UP, Punjab, Haryana and three discoms of Rajasthan.