The National Thermal Power Corporation (NTPC) has said that the terms of settlement of the dispute on pending dues with the Meghalaya Power Distribution Corporation Limited (MePDCL) have been finalised and only await the formal clearance of the State cabinet.
The NTPC mentioned this during the hearing of a writ petition filed by MePDCL in the Meghalaya High Court’s division bench here today.
Both NTPC and MePDCL also told the High Court that some more time may be necessary to conclude the negotiations and arrive at some form of settlement.
Granting the plea for more time, the High Court asked the State government to take expeditious steps in the matter. The court also listed the matter for hearing on November 16.
The dispute arises from the power purchase agreement (PPA) signed on July 13, 2007, under which NTPC is claiming more than Rs 531 crore as dues from the MePDCL. The State government has also terminated the PPA by a notice dated April 16, 2021.
The State government has expressed difficulty to pay the capacity charges being demanded by the NTPC under the PPA of 2007. According to the government, the continuation of the PPA had become unviable, unnecessary, and burdensome on the State exchequer.
The State government had surrendered its entire allocation under the PPA in 2015 itself and had stopped drawing its allocation of power from NTPC as the cost of power per unit was higher than prevailing market price.
