PSU PRESS RELEASE
SC says Sasans contract on running power plant alterable
New Delhi. The Supreme Court on Monday said the contractual obligation that Sasan power project must have produced 95 per cent of the contracted capacity of 620 MW on a sustained basis for 72 hours to receive payments was not something sacrosanct and unalterable.
Pointing out that such a agreement under the power purchase agreement on sustained basis was not a statutory regulation but a contractual one, the bench of Justice Kurian Joseph and Justice Rohinton Fali Nariman said it could be reduced by both the parties.
In response to the observation from the bench that "95 per cent is not a statutory regulation", senior counsel C.A. Sundram, appearing for some of the utilities, said: "it is a contractual regulation."
To that, Justice Nariman said: "So it can be reduced by both the parties." Äs Sundram also said they have not given up this contractual condition, Justice Nariman said: "We will give you a formality of hearing."
The bench directed the hearing of the matter on July 28. The top court has been hearing pleas by seven state power utility companies belonging to Madhya Pradesh, Uttar Pradesh, Rajasthan, Punjab, and Haryana, which have challenged the Appellate Tribunal for Electricity (APTEL) order directing them to pay Sasan project dues of Rs 1,050 crore.
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