Guess who Rajasthan’s cash strapped power distribution companies owe some money to? Former cricketer Rahul Dravid. The Rajasthan electricity regulatory commission has directed the Ajmer and Jaipur power distribution companies to pay the former Indian captain, among several others, surcharge on delayed payment. Dravid, like many others, had set up wind energy-based power plants in the state and had entered into a power purchase agreement (PPA) with the Jaipur and Ajmer discoms in 2009 and 2010, respectively. Clause 7 of the agreement provides for a late payment surcharge in case payments were delayed beyond 30 days. “The payment of petitioner’s (Dravid) bills was not made by the respondents (discoms) within the time limit mentioned in the PPA and hence the respondents made themselves liable for payment of Late Payment Surcharge (LPS),” the Rajasthan Electricity Regulatory Commi-ssion noted in its adjudication order dated December 28, 2015. The discoms argued that the delay in payment was not deliberate but a result of their “precarious financial condition”. “The discoms submitted that they had made best of their efforts to make timely payments but since (their) financial condition was not good, the payments got somewhat delayed and, therefore, the delay occurred was beyond (their) control,” the order noted. However, the commission rejected the discoms’ defence. “The respondents, who have signed the PPAs with a clear understanding that delayed payment will attract interest, cannot plead their financial difficulties. It is for the respondents to manage their finances in such a way that it complies with terms of PPAs,” the commission noted. “We direct the respondents to calculate the interest due, on account of delayed payment in terms of the PPA, subject to the claim being within the limitation period, within four weeks and (pay) interest against the delayed payment as per the terms of the PPAs within a period of eight weeks,” it ordered.
