AIPEF demands cancellation of PPA with Adani in MP

AIPEF demands cancellation of PPA with Adani in MP

Agency News

Chandigarh, Mar 15 : All India Power Engineers Federation (AIPEF) demands that the power purchase agreement (PPA) signed on March 12 with Adani Power by Madhya Pradesh government should be cancelled as the power is already surplus in the state and power utilities are already paying thousand of crore as fixed charges without getting any power from private power generators.

The proposal for construction of 1320 Mw thermal plant by Adani was submitted in February and within one and half month not only the proposal has been accepted but power purchase agreement has also been signed. The undue haste in which the whole process has been completed shows ulterior motives . AIPEF demands an investigation in the whole mess.

VK Gupta Spokesperson AIPEF said that in Madhya Pradesh average power demand in the state is 9000 MW and maximum demand is 14500 MW whereas the state has already signed power purchase agreements worth 21000 MW. This precarious condition is forcing Discoms to pay more than 2000 crore as fixed charges to private power generators without getting any power. This extra burden is transferred to the consumers in shape of enhanced tariff by the regulator.(UNI)