Reliance Power seeks arbitration against distribution cos
Reliance Power ltd said it has filed for arbitration against 11 state distribution companies which had contracted to buy power from its delayed 4000-MW power project in Andhra Pradesh.
July 02, 2012 / 14:02 IST
Reliance Power ltd said it has filed for arbitration against 11 state distribution companies which had contracted to buy power from its delayed 4000-MW power project in Andhra Pradesh.
Reliance's project, which depends on imported coal from Indonesia, has been delayed after the south-east Asian nation changed rules to benchmark the export price to the international market, thereby pushing up fuel costs for the proposed plant.The project is expected to sell power to states at a fixed rate and therefore has become unfeasible.Reliance said the change in Indonesian rules was beyond the company's control and therefore had sent a dispute resolution notice in March to distribution companies and has received no response from them. Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!
