Maharashtra power shortage: Adani & JSW legal notices prove to be a farce following assurances of increased supply

The Maharashtra government has issued notices to Adani Power and JSW for power shortages under the Electricity Act of 2003 and MERC regulations, but rather than resolving the issue, it is more likely to result in litigation. Recognizing this, the state government and MahaVitaran met with Adani Power on Friday, and the latter agreed to improve power delivery in due course. In addition, MahaVitaran CMD Vijay Singhal met with officials from MahaGenco, the state-owned electricity generation business, who guaranteed him increased supplies.

 

Serving notifications to independent power producers, such as Adani Electricity and JSW, a senior state energy department official confessed, will likely result in further litigation rather than enhancing the power supply to MahaVitaran. Adani Power has reduced its supply by 1,400MW, JSW by 300MW and Coastal Gujarat Power Ltd has reduced its supply by 130MW. MahaVitaran has long-term power purchase agreements with Adani Power and JSW.

 

However, because Adani Power and JSW bear the onus of supply as stipulated in the power purchase agreements, MahaVitaran cannot avoid making timely payments to them for power purchases." "MahaVitaran has outstanding dues to Adani Power of Rs 16,000 crore as of date," he informed The Free Press Journal. Due to payment concerns, JSW has also reduced deliveries.

 

MahaVitaran cannot rely on independent power generators to keep the lights on in the face of rising debt. In order to prevent legal wrangling, they have agreed to enhance supply." In light of this, the state government and MahaVitaran may decide not to pursue legal notices but will continue to pursue Adani Power and JSW on the matter of restoring the power supply in accordance with the power purchase agreement.

 

According to the official, MahaVitaran owed MahaGenco around Rs 22,000 crore in power procurement debt. "Despite this, MahaVitaran expects MahaGenco to run its electricity plants with installed capacity of 9,330MW at full capacity and provide it, especially during the current crisis, as its arrears have reached Rs 63,000 crore from its over 2.80 lakh customers." MahaGenco generates 6,200MW, which it can boost to 7,200MW if it receives adequate coal supply, despite the growing mismatch between coal demand and availability. However, if the MahaVitaran delays clearing its arrears, it may have an impact on its operations," he said.

 

Furthermore, MahaGenco cannot continue to blame the Centre, particularly Coal India and its subsidiaries, for restricted coal supply when it has not paid Rs 2,390 crore in dues.

 

 

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