Rel Power wants AP to scrap Krishnapatnam plant PPA
Coastal Andhra Power Limited CAPL, a subsidiary of Reliance Power Limited, has written a letter to the Andhra Pradesh government requesting it to...
Hyderabad: Coastal Andhra Power Limited (CAPL), a subsidiary of Reliance Power Limited, has written a letter to the Andhra Pradesh government requesting it to cancel the power purchase agreement (PPA) it had signed for its 4000 MW power project, a non-starter, at Krishnapatnam.
A senior government official said Reliance Power is willing to surrender its 2,600 acres of land in lieu of which the company wants its bank guarantees back and also revoke liquidated damages besides land cost of Rs 226 crore. "Reliance Power Ltd (RPL) had requested the Andhra Pradesh Southern Power Distribution Company Limited (APSPDCL), as the lead procurer of Krishnapatnam UMPP (ultra mega power projects) to scrap the PPA and revoke the claim of liquidated damages amounting to Rs 400 crore and initiate the action for release and return of bank guarantees of Rs 300 crore by all procurers to RPL," the official said, quoting the letter.
The Reliance Power, through its letter, informed that CAPL would return the land to the State government on the condition that AP Discoms shall release and return the bank guarantee amount of Rs 47.62 crore, the official said. It also requested the government to revoke the claim of liquidated damages amount of Rs 63.50 crore of AP Discoms as against the total claim of LD amount of Rs 400 crore by all procurers and payment of Rs 226 crore towards the land cost by GoAP," according to the official. The official further said the government was yet to take a decision on the issue.