Big setback to Punjab govt as Appellate Tribunal puts stay on PPA termination notice to four power plants

The plants that had been served notices were Damodar Valley Corporation’s Durgapur, Raghunathpur, Bokaro, and Meja Urja Power Project.

Big-setback-to-Punjab-govt Appellate-Tribunal-puts-stay-on-PPA-termination-notice Appellate-Tribunal-for-Electricity

On Sunday, the Appellate Tribunal for Electricity (APTEL) has stayed the Power Purchase Agreement (PPA) termination notice which was served to Punjab’s four power generating plants by Punjab State Power Corporation Limited (PSPCL), with effect from October 31, 2021. 


The notices were shared with Damodar Valley Corporation and its other three entities – Raghunathpur (300MW share), Bokaro (200MW share) and Meja Urja Power Project (85MW share).


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The decision was stayed by APTEL in four different appeals. The stay order read, “Prima facie, we have serious doubts as to the invocation of the Regulation 13 of 2012 Regulations, vis-a-vis, long-term PPAs which have been in the position since 2006. In the above facts and circumstances, we do find a prima facie case for interim protection to be afforded to the appellant, balance of convenience lying in its favour, the non-grant of such relief likely to result in irreparable loss. In the facts and circumstances, we stay the operation of the Orders of the State Commission in so far as it results in the PPA of the appellant with PSPCL in-operational. For clarity, we add that PSPCL will continue to be obliged to procure electricity from the appellant in terms of the PPA till further orders”.


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The decision was taken after the Punjab State Electricity Regulatory Commission (PSERC) gave its ruling about the generating stations of Damodar Valley Corporation (DVC), Kolkata; Pragati Power Corporation Limited and Meja Urja Nigam Power Private Limited, aggregating to 885MW, was costly.


Earlier, on November 2, in a bid to ensure uninterrupted, affordable and quality power supply to the consumers across the state, the Punjab Chief Minister Charanjit Singh Channi gave a go ahead to the Punjab State Power Corporation Limited (PSPCL) to immediately issue notice to Talwandi Sabo Power Limited (TSPL) for repudiation of its Power Purchase Agreement (PPA).



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