No coercive steps shall be taken again R-Power, rules Delhi HC

No coercive steps shall be taken again R-Power, rules Delhi HCThe Delhi High Court has said in a ruling on 20 March that no coercive steps shall be taken against Reliance Power Ltd to procure power from the proposed Krishnapatnam Ultra Mega Power Project (UMPP) at this point of time.

The court order ruled that no coercice action can be taken against the by company by or on behalf of any of the States procuring power from the proposed Krishnapatnam UMPP.

The 3,960 MW Krishnapatnam UMPP that uses coal imported from foreign locations, has been set up in Nellore district of Andhra Pradesh. Coastal Andhra Power Ltd, which is a subsidiary of R-Power, is implementing the project.

The company said that the changes in regulations in Indonesia is impacting all imported coal based projects with nearly 15,000 MW capacity that involve an investment of more than Rs. 75,000 crore. The Association of Power Producers have already expressed their concerns over the issue in their meeting with the Prime Minister of India.

Fort state governments have imposed a fine of Rs 400 crore on the Reliance Power due to delays in the project. Andhra Pradesh, Tamil Nadu, Karnataka and Maharashtra have threatened to en-cash bank guarantees, terminate power purchase agreements and recover the land allotted for the coal-fired project. The states had entered into power purchase agreements with the company.