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An exchange filing by Jaiprakash Power Ventures Ltd that the flash floods in Uttarakhand had led to closure of its 400-MW Vishnuprayag hydro power plant since June 16 led to the traders shorting Jaypee group scrips on Monday.
JP Power Ventures slumped to a low of Rs 16.85 but recovered marginally to close at Rs 17.65, a loss of 12.8 per cent over Friday’s close.
The company had informed exchanges that its plant based in Chamoli district of Uttarakhand has witnessed very heavy rain causing unprecedented flood of very high intensity.
With excessive silt, boulders and other materials in the Alaknanda river, resulting in disturbances to river protection works, it led to shutdown of the barrage operations and power generation effective June 16.
The company said that it is taking effective steps to restore generation, assessment of damages due to flood shall be made on restoration of connectivity to barrage site.
Though the project is insured the floods have resulted in a force majeure event (beyond the control of parties expected to perform under a contract such as natural calamity which is excused).
Commercial aspects of this event will be addressed with Power Purchase Agreement between Uttar Pradesh Power Corporation Ltd and Jaipraksh Power accordingly.
raghavendrarao.k@thehindu.co.in
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