The Central Electricity Regulatory Commission (CERC) has refused to grant compensation to Reliance Power against the unforeseen rise in foreign exchange rates which has considerably increased the debt servicing obligations for the company’s 4,000 mega-watt (MW) Sasan power plant.
The company claimed that due to depreciation of the Indian Rupee, the Sasan plant’s US dollar-denominated debt service obligation over the repayment period will be about Rs 11,392 crore, against Rs 6,516 crore estimated in 2007 when the company had submitted the bid for the project.
