“They are compulsorily deducting 2% of the tariff, which is 10 paise per unit of power,” said Sunil Jain, president, Wind Independent Power Producers Association (Wippa). “The power purchase agreements (PPAs) we had signed had said that discoms were entitled to 2% discount if they made payment within a week of the power purchase. In fact, payments are made six months late, but for the last two to three months, they have begun deducting the discount anyway. The PPAs say the discoms should pay a penalty of 2% if payment is delayed beyond two months. Far from paying the penalty, they are enforcing the discount.”
“They are deducting the entire GBI discount while making payments,” said Jain. “This is over and above the 2% discount. This has been going on for the past eight months. There was nothing in the PPA to this effect.”
He also alleged that wind developers were being verbally asked to renegotiate their PPAs at a lower tariff. “They have not put anything in writing yet, but officials keep bringing it up,” he said.
Latest posts by Mozaffar EtezadiFar (see all)
- India sees consecutive year-on-year decline in coal funding: Report - 24th November 2020
- China lifts renewable power subsidy for 2021 by nearly 5% y/y - 20th November 2020
- World's top miner plans to hire 21,000 women, rectify imbalance - 16th November 2020