NEW DELHI: India’s power producers have sought the intervention of the Union Minister for Power in convincing the state of Madhya Pradesh to reverse its decision not to pay independent electricity producers (IPP) their dues. According to the Association of Power Producers (APP), the state government has invoked the Force Majeure clause under the National Disaster Management Act order passed by the Centre on March 24, 2020 to deny payment.
Such a clause can be invoked by parties to a contract in the event of unforeseeable circumstances preventing its fulfilment. However,power producers note that since power comes under the essential services category, the force majeure clause cannot be used in this case.
