In a meeting held last week, the majority of the 18 distribution utilities in 10 states that have power purchase agreements with the project agreed to compensate Reliance Power as per the provisions of the contract. However, a few utilities expressed their willingness to approach the court against Reliance Power’s decision to surrender the project, a senior government official said.
“In the meeting held last Tuesday, the procurers of Tilaiya UMPP generally appreciated that paying the Rs 125 crore compensation as per the contract will be the best solution in the interest of the project as legal recourse will only delay it. After paying off the company, the procurers can re-bid the plant,” he said
The procurers are likely to meet again in the first week of November. Reliance Power had in April pulled out of the mega plant, citing problems in land acquisition. The company said it could not start construction as Jharkhand did not cooperate in land acquisition, captive coal blocks and related infrastructure in the last five years. Source- Sarita Singh, The Economics Times