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Reliance Power(RPower), announced that it had filed arbitration proceedings under the Indian Arbitration and Conciliation Act, 1996, against 11 procurers of electricity from its 4,000 MW Krishnapatnam Ultra Mega Power Project (UMPP) in Andhra Pradesh.

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

In a statement issued here, the RPower company said 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 (RPower Ltd ) and procurers comprising 11 state distribution companies in four States. The PPA provides for resolution of disputes by arbitration under the Indian Arbitration and Conciliation Act, 1996.

CAPL has already sent a dispute resolution notice on March 13, for an amicable solution under the PPA between the parties. The procurers had not responded to the notice. Monday’s filing is in continuation of the same.

CAPL has said that the change in regulations in Indonesia, which is beyond its control has impacted all imported coal fired projects in India with nearly 15,000 MW capacity involving an investment of nearly Rs.75,000 crore.

Earlier, on a petition filed by Coastal Andhra Power Ltd (CAPL), the Delhi High Court has passed an order directing that no coercive steps shall be taken against CAPL by the procurers of Krishnapatnam UMPP. The matter is before Delhi High Court.

The companies that have been impacted had appealed to the government to permit them to increase power tariffs from the affected plants. The government has asked the producers and the procurers to resolve the matter bilaterally.

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