Andhra Pradesh

State cancels PPA with Hinduja Power

The State government has permitted the A.P. Power Coordination Committee (APPCC) and DISCOMs to cancel the Continuation Agreement (CA) and Power Purchase Agreement (PPA) dated April 28, 2016 and April 15, 1998 respectively with Hinduja National Power Corporation Limited (HNPCL), Visakhapatnam, owing to several defaults in adhering to time schedule in completion of the project and the capital cost, as per G.O. RT No. 163 issued by Principal Secretary (Energy) Ajay Jain.

In a letter to the A.P. Electricity Regulatory Commission (AP-ERC), the APPCC chairman said that ‘unexpected capacity additions’ such as the recent stoppage of generation from AP-Genco to TS-Genco and vice versa (538 Megawatts, 3770.3 Million Units), stranded gas projects (690 MW, 4836 MU) and bundled power from NTPC (380 MW, 2663 MU) resulted in surplus power to the State to the tune of 20460.7 MU, and sought necessary directions to the DISCOMs for filing an application before the commission for withdrawing the CA to the PPA entered with the HNPCL.

The ERC permitted the DISCOMs to withdraw the application filed seeking approval of PPA.

The government then considered and accorded approval to the DISCOMs for withdrawing the said agreements.

Accordingly, the Chairman and Managing Director of AP-Transco has been mandated to take further action in the matter.

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Printable version | Aug 14, 2020 4:23:51 PM | https://www.thehindu.com/news/national/andhra-pradesh/state-cancels-ppa-with-hinduja-power/article25728290.ece

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