SC allows Gujarat projects to renegotiate PPAs

The expert committee recommended opening up the PPAs to allow fuel cost pass through and an option to the companies to extend the power purchase contracts by 10 years

SC allows Gujarat projects to renegotiate PPAs

The expert committee recommended opening up the PPAs to allow fuel cost pass through and an option to the companies to extend the power purchase contracts by 10 years

Sarita C Singh  |  ET Bureau  |  Updated: October 29, 2018, 14:21 IST

SC allows Gujarat projects to renegotiate PPAs New Delhi : In a major relief to Tata Power, Adani Power and Essar Power, the Supreme Court has allowed renegotiation of power purchase agreements of these companies' imported coal based power projects as recommended by a high power committee.

The expert committee, led by retd Supreme Court judge R K Agarwal, recommended opening up the power purchase agreements (PPAs) to allow fuel cost pass through and an option to the companies to extend the power purchase contracts by 10 years.

The Supreme Court on Monday allowed state discoms and power producers move Central Electricity Regulatory Commission (CERC) to seek amendment in purchasing power agreements. The court has given eight weeks time to the stakeholders.