ERC rejects move to scrap pacts with Adani firm, 5 other bidders

LUCKNOW: The UP Electricity Regulatory Commission (UPERC) on Wednesday turned down a recommendation for cancelling solar power purchase agreements with six private bidders.

The UP Power Corporation Ltd (UPPCL) and UP New and Renewable Energy Development Agency’s (UPNEDA) had made the recommendation, claiming that the private players were not showing sufficient progress at the site of the proposed solar plants.

In its order, the commission said if the PPAs (power purchase agreements) of the six companies setting up solar plants in the state were allowed to be terminated, it would vitiate the investment atmosphere, besides putting the companies to financial loss.

The UPPCL and the NEDA had a few weeks ago served notices on the six private developers, seeking to terminate PPAs with them.

These private players are: Adani Green Energy Ltd, Ahmedabad; Sahasradhara Energy Pvt Ltd Chennai; Sudhakar Infratech Pvt Ltd, Hyderabad; Technical Associates Ltd, Lucknow; Avadh Rubber Prop Madras Elastomers, Lucknow and M/s Pinnacle Jackson, New Delhi. The UPNEDA and the UPPCL compared the progress of the six bidders with nine others whose projects, they stressed, had been commissioned.

UPPCL and UPNEDA argued that these bidders were not serious about completing the projects and were taking the ground that till the tariff was finally approved by the commission they were not bound to complete the project and extension should be given to them.

The commission, however, maintained that out of six bidders M/s Adani Green Energy (Uttar Pradesh) Ltd, Ahmedabad, and M/s Sahasradhara Energy Pvt Ltd, Chennai had almost completed their projects and the remaining four developers had done only part of the work.

But all the six bidders had shown a definite inclination to complete the projects after the tariff was finally adopted by the commission, the regulator said.

The commission proposed to adopt the tariff at the rate of Rs 5.21 per unit for the above named six bidders for a period of 12 years fixing January 31 as the date for public hearing to discuss the proposed tariff.

It also ruled that bidders not willing to accept the tariff that would be adopted finally after the public hearing will be free to leave the project and get back their bank guarantee from the UPPCL/NEDA.

The UPERC last month nullified another UPPCL decision on terminating the PPAs with Bajaj’s six thermal units situated at sugar mills across the state.