Pricing: Rpower for arbitration Coal prices rose on Indonesian move

New Delhi, July 2: Reliance Power on Monday said it has filed for arbitration against 11 procurers of electricity produced from its 4,000 MW ultra mega power project at Krishnapatnam in Andhra Pradesh.

“Reliance Power has filed its statement of claim in the Indian Council of Arbitration under the Indian Arbitration and Conciliation Act 1996 against the 11 Procurers of its Krishnapatnam Ultra Mega Power Project (UMPP),” the company said in a statement.

The power procurers include four distribution utilities in Andhra Pradesh, five in Karnataka and one each in Maharashtra and Tamil Nadu.

“CAPL (an RPower subsidiary) has said that the change in regulations in Indonesia, which is beyond its control, has impacted imported coal fired projects in India with nearly 15,000 MW capacity with an investment of nearly `75,000 crore,” RPower said.

The company said it has send a dispute resolution notice for an amicable solution to procurers earlier in March 2012, but did not receive any response. When Indonesia decided to link coal prices to that of the global market in September 2011, the fuel became expensive, hurting Indian power producers. When approached for a tariff hike, the government had asked them to strike a deal with their procurers

The Statement of Claim has cited relevant clauses under the Power Purchase Agreement (PPA) signed between Coastal Andhra Power Ltd (CAPL), the wholly owned subsidiary of Reliance Power Ltd (RPL) and Procurers comprising 11 state distribution companies in four states.

The Power Purchase Agreement provides for resolution of disputes by Arbitration under the Indian Arbitration and Conciliation Act 1996. Earlier, on a petition filed by CAPL, the Delhi High Court has passed an order that no coercive steps shall be taken against CAPL by the Procurers of Krishnapatnam UMPP. The matter is before the Delhi HC. — PTI