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AIPEF urges CM Haryana not to release extra payments to Adani

VINOD GUPTA | August 22, 2019 04:25 PM

CHANDIGARH: All India Power Engineers Federation (AIPEF) has urged the Chief Minister Haryana not to  release payments to Adani Power against power purchase agreements for 1424 MW on the Gujarat pattern.

Padamjit Singh Chief Patron AIPEF  in a  letter to Chief Minister has there is no reason to compensate Adani for actual fuel cost as CERC order is in favor of Gujarat PPAs and there is no such order in case of Haryana PPAs.

Adani Power  with 4620 MW  ultra mega power coal project Mundra has 25 years long power purchase agreements with Gujarat and Haryana for supply of 2000 MW and 1424 MW respectively.

Padamjit Singh alleged in his letter  that there is lot of pressure on the Haryana government  from Adani group and central government that Haryana Discoms should release payment on the Gujarat pattern to compensate the fuel cost.

Adani has promised the supply of power to Gujarat and Haryana on firm price   on basis of  imported coal from Indonesia. However, in 2010 the Indonesian Government  issued a notification by which the coal to be exported  would be priced at international rate and all prior agreement for export at lower rate were cancelled.

With this increase in fuel rates Adani claimed that it was unable to supply power to Haryana and  Gujarat at the contracted rates as per original PPAs of 2007 and claimed relief under force majeure clause of PPA and change of law clause.

This dispute was adjudicated by the Supreme Court  judgment of April 2017 and consequently Adani was required to supply power to Gujarat at the original bid rate as contained in the PPAs.

Subsequently, after mutual agreement between Adani and GUVNL wherein GUVNL agreed to pay for the complete pass through the fuel cost even when coal is imported from Indonesia at higher rate . This pass through of fuel cost resulted in the increase of energy rate at about 2 Rs. per unit over and above the original bid rate of 2007. Two supplementary PPAs were wherein GUVNL agreed to pay for the pass through of fuel cost from October 2018 the CERC gave its approval in April 2019

However All India Power Engineers Federation has filed an appeal before Appellate Tribunal for Electricity   on May 27 this year  for quashing of CERC order .

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