RGPPL rejects MahaVitaran's move to terminate PPA for Dabhol power purchase.

Ratnagiri Gas & Power Pvt Ltd. (RGPPL) has rejected Maharashtra State Electricity Distribution Company’s (MahaVitaran) 'unilateral' move to terminate the power purchase agreement (PPA) for procuring power from the 1,967-megawatt Dabhol project, according to sources.

The RGPPL board will meet in the first week of April to deliberate on MahaVitaran’s move and also to decide on converting the additional debt of Rs. 450 crore (equivalent to RGPPL's dues till January 2015 to project lenders) into equity. This will avoid the project turning into a non-performing asset.

An RGPPL official told Business Standard: 'The PPA still holds good. MahaVitaran's unilateral action is not acceptable. RGPPL is awaiting a final order from the Appellate Tribunal for Electricity on MahaVitaran's plea against the Central Electricity Regulatory Commission’s order allowing RGPPL to use regasified liquefied natural gas for the restoration of power generation.'

According to the official, under the PPA, MahaVitaran draws 95 per cent power from the Dabhol power project.


BS