Expressing serious concern over Power Ministry’s proposed letter of credit (LC) as payment security mechanism under the power purchase agreement, the Southern Regional Power Committee (SRPC) has requested the ministry to defer the implementation date.
The SRPC held a meeting in Bengaluru recently with its members, power utilities of southern states and a Union Territory Andhra Pradesh, Karnataka, Kerala, Tamil Nadu, Telangana and Puducherry.
All southern states and union territories had expressed serious concern over implementation of this order,” a letter addressed to the secretary (power) Ajay Kumar Bhalla said Tuesday.
Most of the discoms in the region are in deep financial stress and opening and maintaining of the adequate LC as per the power purchase agreement at this juncture may not be viable, the letter said. Read More
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