Maharashtra discom to pay Rs 2,477 crore to Power unit NTPC under APTEL order

The Appellate Tribunal of Electricity (Aptel) recently directed the Maharashtra State Electricity Distribution Company Ltd (MSEDCL) to pay Rs 2,477 crore to NTPC Ltd because of terminating its agreement with a subsidiary of the latter.

This recent direction to the Maharashtra State Electricity Distribution Company Ltd (MSEDCL) is ordered to pay state-owned NTPC Rs 2,477 crore on account of the former terminating its agreement with a subsidiary of the latter.

The issue dates back to 2014 when MSEDCL ended the agreement with Ratnagiri Gas Power Pvt Ltd (RGPPL), the NTPC subsidiary that has a 2 gigawatt (Gw) gas-fired plant in the state.

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However, Ratnagiri Gas Power said the distribution company (discom) did it unilaterally and its past dues were not cleared. The agreement was signed in 2007 -- two years after NTPC took a controlling stake in the company. RGPPL has a troubled past with several instances of shutdown and revival packages.

The project was first envisaged as a Dabhol power plant by US-based Enron Corporation in 1995 to build a natural gas-fired station in an agreement with the Maharashtra government. The high cost of power kept the project languishing till Enron exited it and wrapped its operations in India after it went bankrupt in 2002.

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