Tata Power can't terminate contracts unilaterally: NTPC

Country's largest power producer, NTPC has said that Tata Power's unit can't unilaterally call off pacts with it, and should compensate the state-run firm if it decides to do so.
Tata Power Delhi Distribution Company Ltd (TPDDL) wants to surrender 300 MW electricity it buys from NTPC saying that the fuel costs have gone up.
NTPC supplies around 1,000 MW of power to TPDDL.
According to NTPC official: "They (TPDDL) can't terminate the PPAs (Power Purchase Agreements) with us unilaterally. They have said that the prices of gas have gone up therefore it has become difficult for them to purchase electricity. If they do (cancel pacts), we should be duly compensated."

The company has invested in setting up plants to provide electricity to the Delhi discom, he added.
TPDDL Chief Executive Officer Praveer Sinha told PTI in an e-mailed response on the issue: "Sometime back, we had written to the Ministry of Power to consider reallocation of power from some of the high cost plants of NTPC - Jhajjhar plant and Badarpur plant as three of its units are very old and their tariff is much higher."

He said that similar request was made to Delhi Government for surrender of power from Delhi Genco's Rajghat plant.
"Total surrender will be about 300 MW. Alternate arrangements will be made by TPDDL to meet this gap through banking arrangements as also tie up of renewable power or solar roof top," Sinha said.

"The same is under consideration of Ministry of Power and Delhi Government and no decision has been made as yet," he added.
The private power utility recently announced that it will sell its 5 per cent stake in PT Kaltim Prima Coal (Indonesia) for about USD 250 million to cut its debt, less than 6 months after offloading its holding in another Indonesian coal company PT Arutmin.
The company's 4,000 MW ultra mega power project at Mundra in Gujarat continues to face trouble due to increase in the price of Indonesian coal.
It had approached the electricity regulator CERC seeking higher tariff for Mundra project.