Power producers seek minister’s intervention as MP denies payment to IPPS

NEW DELHI: The Association of Power Producers (APP) has urged Union Minister R K Singh to advise Madhya Pradesh government to reconsider its decision of denying payment of fixed or capacity charges to independent power producers.

The association has written a letter to the power minister in this regard.

“On behalf of independent power producers (IPPS), we request your intervention to advise the Government of Madhya Pradesh to reconsider this decision of denying the rightful dues of capacity charges to the IPPS, which you will appreciate is highly unjust, illegal and arbitrary,” the letter said.

According to the letter, several IPPS which supply power to the state through Madhya Pradesh Power Management Company Ltd (MPPMCL) have been facing “arbitrary and discrimination action with regard to payment of capacity charges by MPPMCL”.

The IPPS supplying power to Madhya Pradesh include Jaiprakash Power Ventures, Torrent Power, Lanco Amarkantak, BLA Power, MB Power, Jhabua Power, among others.

Non-payment of capacity charges to IPPS would not only jeopardize their debt service obligations leading to creation of a fresh set of NPAS within the banking system, but may also lead to non-payment of salaries and wages and the possibility of retrenchment, as none of them have adequate reserves to tide over the COVID-19 crisis, it added.

There are at least 10,000 people employed by IPPS in the state, APP claimed.