Torrent, Lanco among private gencos not paid by Madhya Pradesh Power Co

Several private independent power producers (IPPs) including Torrent Power, Jaiprakash Power, Jhabua Power, Lanco Amarkantak have complained to the union power ministry that Madhya Pradesh Power Management Company Limited (MPPCL) is not paying them.

The IPPs also alleged MPPMCL has refused to schedule power from these units and that they are not being paid capacity charges. A power procurer is obliged to pay capacity charges to a generator for the power scheduled to be supplied, irrespective of the quantum of consumption.

This move on the part of the MP government comes after the union power ministry had clarified that electricity generation is an essential service and no state can invoke force majeure to defer payments. “Obligation to pay for capacity charges as per the power purchase agreement shall continue,