Uttar Pradesh, already reeling under severe power crisis, may lose 1200 Mw energy from Anpara-C project developed by lanco Kondapalli. In view of non payment of dues for previously purchased energy by UP Power Corporation limited (UPPCl) the Hydrabad based private company has sought permission to sell off its energy in open market.
The UP Electricity Regulatory Commission (UPERC) is holding hearing over the petition by private company, seeking review of power purchase agreement (PPA) with power corporation and permission to sell energy in open market, on Tuesday, May 14.
Seeing untoward development which could further add to power woes of state government the chief secretary, Javed Usmani have reviewed situation with senior power corporation and Rajya Vidyut Utpadan Nigam limited (RVUNl) officials. lanco have two 600 Mw capacity thermal units at Anpara-C out of which one was lying closed on pretext of losses in present.
According to sources, the lanco's move was initiated recently after state government agreed on providing special financial grant to power corporation for payment of outstanding dues to Roja thermal unit owned by Reliance Energy at Shahjahanpur. Owing to non payment of dues Reliance Energy had closed its one 600 Mw capacity unit which was started again only after allocation of funds by the government.
The private company in its petition filed with UPERC has stressed, due to non payment of dues by the power corporation it was burdened with huge financial loss. The company was facing difficulty in running the units due to insufficient and substandard supply of coal.
Demanding review of the power purchase agreement, lanco has also sought guarantee for payment of energy price by power corporation. It said, if providing guarantee for time bound payment was not possible the company should be allowed to sell off the energy generated from two units in open market.
Pointing out that banks have agreed to give loans to power corporation under financial restructuring plan (FRP) of central government which will be utilised in paying dues, a senior power corporation official said, but we are anxiously looking for the decision by regulatory commission.