Delhi govt can shut Badarpur plant after paying fixed cost

However, the Delhi govt has not approached the Union Power Ministry on sorting out issues related to PPA for shutting down the plant

In response to the Delhi government's decision to shut down the NTPC Badarpur thermal power plant, the Union power ministry said it wasn't communicated or consulted for the same and the city government can go ahead after paying the fixed cost.

"The Delhi government can shut down Badarpur power plant according to the power purchase agreement (PPA) after paying fixed cost to the company for recovering its investments," Piyush Goyal, Union minister of state for coal, power and renewable energy told reporters.

The minister said the Delhi government did not approach the Union power ministry or him, on sorting out issues related to the PPA for shutting downplant.

The Aam Aadmi Party-led government has taken this step in the wake of the rising pollution in the national capital region.

"They have to sort out (issues in) their PPA. They have to honour it...within the framework of PPAs, whatever is possible can be done," Goyal said. He added, "If they have decided to shut it down, they can commit to pay the fixed charges and shut it. We have no problem."

Delhi is the sole beneficiary of the plant, having an installed capacity of 720 Mw.