No. 18 - 2020 / Fix Charges             01 - 04 – 2020

Chief Minister

All States & Union Territories

Sub:  Regarding curtailing of power from IPP's and CGS's under Force Majeure Conditions/Event due to Lock Down

Respected Sir,

You are kindly aware that  Govt. of India vide it's  order No. 40-3/2020-DM-I(A) dated 24.03.2020 and its addendum dated 25.03.2020 has completely locked down the whole country to combat the threat of Covid-19 Pandemic.

 All State Governments have also issued the similar orders and have declared complete lock down from 24-03-2020 to 14th April,2020. Through this order  Government has imposed complete restrictions in the form of lock-down. As a result, there is drastic reduction in load/demand in all States as all the industrial/commercial units and railways have been shut down. 

2.The imposition of above lock down qualifies as Force Majeure under the PPA in as much as it prevents the performance of the obligations on the part of the Procurer  State DISCOMS of scheduling the power from IPP generating stations as well from Central Generating Stations, which events and circumstances are beyond the control of the State DISCOMS . 

3. In the above circumstances of sudden drastic reduction in demand /load in almost every State, you are requested to issue directions to State DISCOMS

to stop scheduling power from these power plants under   existence of force majeure circumstances affecting Discoms. When situation eases out, then State Discoms will again start scheduling power from their power plants as per requirement of load/demand in the state. Thus already financially crunched DISCOMS will not be further burdened to pay fix charges without purchasing electricity. 

4. It may be worthwhile to mention that Punjab State Power Corporation Limited (PSPCL) has already served such notice under Article 12 of PPA dated 01.09.2008 between TSPL and PSPCL -- Regarding curtailing of power under Force Majeure Conditions/Event. Copy attached.

5. You are kindly requested to kindly issue instructions to your State Power Utilities in larger interest of State and consumers.

Thanking you with regards.

Shailendra Dubey

Chairman