UPERC Grants a Month Extension To NTPC Against Case Filed By UPPCL


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The Uttar Pradesh Power Corporation Limited (UPPCL) has filed a petition with the Uttar Pradesh Electricity Regulatory Commission (UPERC) against National Thermal Power Corporation, (NTPC) regarding invalid, unfair, illegal termination of power sale agreement (PSA) for 300 MW wind power.

The UPPCL has made following  prayers : To declare the termination issued by NTPC as illegal, declare the action of M/s Mytrah Vayu (Amrawati) Pvt. Ltd. in having demanded the payment of Performance Bank Guarantee deposit from NTPC as illegal and to grant consequential reliefs.

NTPC as an intermediary conducted  a tariff  based  competitive  bidding, in terms of Scheme and Guidelines on 08.12.2017 and UPPCL was awarded 800 MW of capacity. NTPC had signed two PSAs on 14.03.2019 for supply of 350 MW wind power. Out of 350 MW power, 300 MW was to be supplied by Mytrah Vayu Pvt. Ltd and remaining 50 NIW by Srijan  Energy  Pvt.  Ltd. NTPC signed PPAs with Srijan Energy, Pvt. Ltd.  for  50 MW  on 25.03. 2019 and Mytrah Vayu Pvt. Ltd. for 300 MW on 25.03.2019.

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DISCOM stated that NTPC has terminated PSA on 14.03.2019 for supply of 300 MW wind power vide their letter dated 18.07. 2019 on the ground that UPPCL could not obtain the approval of PSA by UPERC adopting the tariff and trading margin of 7 paisa/unit  to NTPC and approving the procurement of the contracted capacity. NTPC has also contended that wind power developer Mytrah Vayu Ltd. has terminated the PPA on 24.06.2019.

UPPCL stated that it was NTPC’s responsibility to file a petition with the Central Electricity Regulatory Commission (CERC) for tariff adoption and other approvals since it was a multi-state power supplier like the Solar Energy Corporation of India (SECI) and PTC India Limited. It also mentioned that NTPC did not provide necessary documents relating to approval of power to be procured.

NTPC Limited have sought one month to file its reply to the petition and also stated that the company would present its case through legal counsel.

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The Commission directed UPPCL to serve copies of the Petition to NTPC and Mytrah Vayu, if not served earlier. The commission also granted one-month time to NTPC and Mytrah Vayu to file their reply.UPPCL is also directed to file its rejoinder within two weeks thereafter. 

The commission has scheduled  the next hearing on 04.08.2020.

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