Tangedco told to pay ₹18 cr. to GMR arm

Will be 50% of total dues to firm

Central Electricity Regulatory Commission (CERC) in its interim order has directed Tamil Nadu Generation and Distribution Corporation Ltd (Tangedco) to make a payment of ₹18 crore, which is 50% of the total outstanding amount to GMR Warora Energy Limited.

The company had moved the CERC and sought a direction for non-payment of outstanding dues amounting to about ₹36.5 crore towards GST compensation cess, for supply of power.

GMR Warora has a 600 MW (2X300 MW) operational coal-based power plant located in Chandrapur, Maharashtra. It had a 150 MW power purchase agreement with Tangedco.

The company said that the non-payment has put it in extreme financial distress and the power project runs the risk of being declared as a Non- Performing Asset and alleged that Tangedco had willfully defaulted in payments.

GMR said that Tangedco had not complied with the previous order of CERC last year and sought for relief for non-compliance.

CERC has asked Tangedco to make the payment within 10 days of its order dated March 6 and posted the case for further hearing.

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Printable version | Apr 8, 2020 11:55:06 AM |

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