6 days ago
6
The Central Electricity Regulatory Commission (CERC), New Delhi has directed a dispute between Tamil Nadu Power Distribution Corporation Limited and private power producer KSK Mahanadi Power Company to be referred for arbitration.
TNPDCL has sought liquidated damages of ₹49.78 crore from KSK Mahanadi over alleged delays in power supply. The KSK Mahanadi sought quashing the demand of liquidated damages by TNPDCL.
KSK Mahanadi has established a 1800 MW, coal-based thermal generating station in the State of Chhattisgarh comprising three units of 600 MW each.
Tamil Nadu Power Distribution Corporation Limited (TNPDCL) had selected KSK Mahanadi as the successful bidder for the supply of 500 MW of power and a power purchase agreement was signed on November 27, 2013.
Under the original terms of the bidding documents, the scheduled delivery date (SDD) was October 1, 2013. However, due to delays in execution of power purchase agreement the SDD was revised to June 1, 2014 and subsequently, due to transmission constraints (a force majeure event), the SDD was extended to August 1, 2015. Thereafter the SDD was rescheduled from August 1, 2015 to October 1, 2015.
TNPDCL had sought liquidated damages for the period from June 1, 2014 (original SDD under the PPA) till August 25, 2014 (date of commissioning of Unit-II of the Project), as per the proceedings before CERC.
“The disputes between the parties primarily relate to the levy/imposition of liquidated damages, which is a non-tariff dispute, and the Commission does not have the jurisdiction to adjudicate the same,” CERC said in its order.
“In the present case, there is indisputably a valid and subsisting arbitration clause in the power purchase agreement,” it said and directed the present dispute between the parties to be referred for arbitration.
CERC also directed TNPDCL not to take any coercive action against KSK, in respect of the bills raised, till an order is passed by the Arbitral tribunal.
English (US) ·