Tata Power discontinues supply to Rajasthan discoms for payment default

Tata Power discontinues supply to Rajasthan discoms for payment default
Tata Power has announced to discontinue the supply of power to the three Rajasthan state-owned distribution companies from its Mundra Ultra Mega Power Project(UMPP) due to non-compliance on payment security related issues. The company supplies 400MW of electricity to the three Rajasthan discoms from its Mundra UMPP.
Coastal Gujarat Power Limited (CGPL), a wholly owned subsidiary of Tata Power, invoked its rights under the Power Purchase Agreement (PPA) and has decided to discontinue the supply of Power to the three Rajasthan state-owned Distribution Companies from its Mundra Ultra Mega Power Project(UMPP) due to non-compliance on payment security related issues. Tata Power said the decision has been taken after its several notices to the discoms required under the PPA, to effectively terminating the contract.
CGPL is a Special Purpose Vehicle (SPV) formed for setting up and operating the 4000 MW Mundra UMPP. CGPL has signed a Power Purchase Agreement (PPA) with seven procurers (distribution licensees) from five states i.e. Gujarat, Maharashtra, Haryana, Rajasthan and Punjab for the sale of contracted capacity.
“Due to consistent failure on the part of Rajasthan discoms as procurers to fulfil the obligations including collateral arrangements in spite of repeated and regular reminders, CGPL was constrained to issue notice to the Rajasthan state discoms. Rajasthan discoms have been in default of paying its dues in a timely manner leading to large outstanding dues. Mundra balance of payments on account of fuel tariffs is already a challenge as recovery through tariff is lower than spendings. With continued non payment in a timely manner and non-availability of payment security, the company finds it difficult to manage payment for its obligations to buy fuel and discharge its various obligations,” Tata Power said in a statement. “The company will make alternate arrangements for contracting and selling this power.”

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Tata Power discontinues supply to Rajasthan discoms for payment default

Tata Power discontinues supply to Rajasthan discoms for payment default
 
Tata Power has announced to discontinue the supply of power to the three Rajasthan state-owned distribution companies from its Mundra Ultra Mega Power Project(UMPP) due to non-compliance on payment security related issues. The company supplies 400MW of electricity to the three Rajasthan discoms from its Mundra UMPP.
 
Coastal Gujarat Power Limited (CGPL), a wholly owned subsidiary of Tata Power, invoked its rights under the Power Purchase Agreement (PPA) and has decided to discontinue the supply of Power to the three Rajasthan state-owned Distribution Companies from its Mundra Ultra Mega Power Project(UMPP) due to non-compliance on payment security related issues. Tata Power said the decision has been taken after its several notices to the discoms required under the PPA, to effectively terminating the contract.
 
CGPL is a Special Purpose Vehicle (SPV) formed for setting up and operating the 4000 MW Mundra UMPP. CGPL has signed a Power Purchase Agreement (PPA) with seven procurers (distribution licensees) from five states i.e. Gujarat, Maharashtra, Haryana, Rajasthan and Punjab for the sale of contracted capacity.
 
“Due to consistent failure on the part of Rajasthan discoms as procurers to fulfil the obligations including collateral arrangements in spite of repeated and regular reminders, CGPL was constrained to issue notice to the Rajasthan state discoms.   Rajasthan discoms have been in default of paying its dues in a timely manner leading to large outstanding dues. Mundra balance of payments on account of fuel tariffs is already a challenge as recovery through tariff is lower than spendings. With continued non payment in a timely manner and non-availability of payment security, the company finds it difficult to manage payment for its obligations to buy fuel and discharge its various obligations,” Tata Power said in a statement. “The Company will make alternate arrangements for contracting and selling this power.”

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Tata Power discontinues supply to Rajasthan discoms for payment default

Tata Power discontinues supply to Rajasthan discoms for payment default
 
Tata Power has announced to discontinue the supply of power to the three Rajasthan state-owned distribution companies from its Mundra Ultra Mega Power Project(UMPP) due to non-compliance on payment security related issues. The company supplies 400MW of electricity to the three Rajasthan discoms from its Mundra UMPP.
 
Coastal Gujarat Power Limited (CGPL), a wholly owned subsidiary of Tata Power, invoked its rights under the Power Purchase Agreement (PPA) and has decided to discontinue the supply of Power to the three Rajasthan state-owned Distribution Companies from its Mundra Ultra Mega Power Project(UMPP) due to non-compliance on payment security related issues. Tata Power said the decision has been taken after its several notices to the discoms required under the PPA, to effectively terminating the contract.
 
CGPL is a Special Purpose Vehicle (SPV) formed for setting up and operating the 4000 MW Mundra UMPP. CGPL has signed a Power Purchase Agreement (PPA) with seven procurers (distribution licensees) from five states i.e. Gujarat, Maharashtra, Haryana, Rajasthan and Punjab for the sale of contracted capacity.
 
“Due to consistent failure on the part of Rajasthan discoms as procurers to fulfil the obligations including collateral arrangements in spite of repeated and regular reminders, CGPL was constrained to issue notice to the Rajasthan state discoms.   Rajasthan discoms have been in default of paying its dues in a timely manner leading to large outstanding dues. Mundra balance of payments on account of fuel tariffs is already a challenge as recovery through tariff is lower than spendings. With continued non payment in a timely manner and non-availability of payment security, the company finds it difficult to manage payment for its obligations to buy fuel and discharge its various obligations,” Tata Power said in a statement. “The Company will make alternate arrangements for contracting and selling this power.”

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