IOC opposes Andhra Pradesh govt’s move to redo power purchase pacts
HYDERABAD: State-owned Indian Oil Corporation has refused to accept the demand of Andhra Pradesh government to renegotiate power purchase agreements (PPAs), becoming the third central government entity to do so after NTPC and Solar Energy Corporation of India (SECI).
IOCNSE -1.87 % has also asked Andhra’s power distribution companies (Discoms) to immediately clear arrears of Rs 23.35 crore against the supply of wind power for the past 10 months. The fuel company has a 48-megawatt wind power facility near Gandikota in Kadapa district.
Earlier, NTPC and SECI had communicated to the Andhra government that non-payment of arrears could invite legal action. They also made it clear that the tariffs entered into under power purchase agreements were non-negotiable as those contracts were sealed with the approval of the electricity regulatory commission.
