PPAs can be revisited only in exceptional cases: Moily

PPAs are not something to be tinkered with and should be revisited only in exceptional cases,Power Minister,Veerappa Moily said on Tuesday

Written by ENS Economic Bureau | New Delhi | Published: August 29, 2012 12:45 am

The power purchase agreements (PPAs) are not something to be tinkered with and should be revisited only in exceptional cases,Power Minister,Veerappa Moily said on Tuesday.

“I do not know if there is any report from the Attorney General… There is a sanctity for the signing of a PPA. It cannot be meddled with,that easily. When there is a need,it has to be examined case-to-case on exceptional circumstances,” Moily said on the sidelines of an NTPC event here. “I do not think as a matter of routine you can revisit PPAs,” he added.

He said this in response to the news reports of Attorney General Goolam Vahanvati having said that PPAs are not sacrosanct and the power companies cannot be denied a hearing based on the signed agreements.

PPAs are signed as long-term power supply contracts between the power generation and the distribution companies.

The state power regulators and distribution companies,however,refused to hike tariffs citing the legally binding PPAs. The power ministry had referred the matter to the CERC.

Moily’s statement comes a day before his meeting with the Forum of Regulators,a representative body of power regulators. He is slated to hold a meeting with power producers on August 31.

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