NEW DELHI : In an attempt to help green energy developers receive their payments, the union government plans to file a special leave petition (SLP) in the Supreme Court, requesting a timely decision from the High Court of Andhra Pradesh over the power ministry’ order of making it mandatory for state distribution companies (discoms) to offer letters of credit (LC) for buying electricity.
As part of the payment security mechanism, a LC can be encashed by an electricity supplier if a discom doesn’t clear its dues in time. Given the controversial attempt by the Y.S. Jagan Mohan Reddy-led state government to renegotiate clean energy tariffs with developers, the power ministry’ order also prevented them from procuring power from exchanges and through the open access mechanism.
