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IOC opposes Andhra Pradesh govt's move to redo power purchase pacts

IOC has also asked Andhra’s Discoms to immediately clear arrears of Rs 23.35 crore against the supply of wind power for the past 10 months.

, ET Bureau|
Jul 27, 2019, 11.05 AM IST
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IOC said under the terms of the PPAs, it was entitled to a firm tariff of Rs 4.70 a unit for 25 years from the start of commercial operation at the facility.
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).

IOC 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.

IOC said it cannot bring down the tariff from Rs 4.70 a unit to Rs 2.43 as being sought by the AP Southern Power Distribution Company (APSPDCL).

Responding to notices of APSPDCL seeking to reduce the tariffs, IOC said the contentions raised by APSPDCL were not only contrary to the PPAs entered into by the parities, but also not in consonance with the tariff order of the AP Electricity Regulatory Commission.

IOC said under the terms of the PPAs, it was entitled to a firm tariff of Rs 4.70 a unit for 25 years from the start of commercial operation at the facility.

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