Country’s largest power producer, NTPC has said that Tata Power’s unit can’t unilaterally call off pacts with it, and should compensate the state-run firm if it decides to do so.
Tata Power Delhi Distribution Company ltd (TPDDl) wants to surrender 300 MW electricity it buys from NTPC saying that the fuel costs have gone up.
NTPC supplies around 1,000 MW of power to TPDDl.
According to NTPC official: “They (TPDDl) can’t terminate the PPAs (Power Purchase Agreements) with us unilaterally. They have said that the prices of gas have gone up therefore it has become difficult for them to purchase electricity. If they do (cancel pacts), we should be duly compensated.”
The company has invested in setting up plants to provide electricity to the Delhi discom, he added.
TPDDl Chief Executive Officer Praveer Sinha told the news agency in an e-mailed response on the issue: “Sometime back, we had written to the Ministry of Power to consider reallocation of power from some of the high cost plants of NTPC - Jhajjhar plant and Badarpur plant as three of its units are very old and their tariff is much higher.”