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Generators want ministry to intervene as power purchasers invoke force majeure

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NEW DELHI: Generation companies have knocked on the doors of the power ministry for immediate intervention as distributors invoke covid-19 as a force majeure event and renege on their purchase agreements (PPA) with distribution companies.

Among the distributors which have invoked the clause are Uttar Pradesh Power Corp Ltd (UPPCL), DNH Power Distribution Corp Ltd of Dadra and Nagar Haveli, Punjab State Power Corp Ltd and Southern Power Distribution Company of Telangana.

Power generators fear the action by a few states and their distributors could send a wrong signal to others to follow suit. As feared, BSES Rajdhani Power did the same with its 1 April letter to THDC India Ltd.

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