The BJP led Uttar Pradesh government cancelled power purchase agreement (PPAs) with seven coal based power projects totaling 7040 MW which failed to meet their commissioning targets. These projects were awarded through MoU route to various players such as Lanco, Bajaj Energy, Welspun Energy and Unitech Machines etc. during the BSP regime in 2011.
In a notice issued to these companies, the government has also communicated that it will encash the bank guarantee for these projects which totals up to approximately Rs 350 crore.Business Standard has reviewed the notice.
“The issuance of this termination notice has been occasioned because you have failed to duly perform and obtain long term coal linkage from Standing Linkage Committee, Government of India, despite extensions