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Madhya Pradesh junks PPAs of Sky Power Solar’s projects

Twesh Mishra New Delhi | Updated on January 10, 2018 Published on September 06, 2017

MPPMCL rejected the justification given by Sky Power Solar for delays in commissioning of the project

The Madhya Pradesh Power Management Company Limited (MPPMCL) had junked the power purchase agreements of Sky Power Solar’s projects citing delays in commissioning of projects.

In a letter dated August 11, MPPMCL rejected the justification given by Sky Power Solar for delays in commissioning of the project. Official sources said, MPPMCL in its letter has said that Sky Power has failed to achieve fulfilment of required conditions even during the permissible delay period of 9 months.

MPPMCL also decided to encash the ₹15 crore Contract Performance Guarantee for the 50 MW solar power project that was to be located at Ghatakhedi village of Rajgarh district. Sky Power solar had committed a tariff of ₹ 5.109 per unit.

According to the initial commitment that was made in September 2015, Sky Power Solar was to commission the 50 MW project by May 11 this year. There was also a permissible delay period of 116 days during which portions of the performance guarantee was encashed.

When bagging the projects in 2015, Canada based Sky Power committed to develop 150 MW of solar projects in Madhya Pradesh. “Madhya Pradesh will mark the beginning of SkyPower’s electrification efforts in India with more announcements expected in the months ahead,” the company had said in a press statement. In its representation, Sky Power Solar said that the location of the project had to be changed to Khajuri village in Khandwa district and this had led to the delay in the commissioning of the project.

But, Sky Power isn’t the only one facing difficulties in executing projects. A government official aware of the decision told BusinessLine, “The PPAs of Renew Power’s projects have also been cancelled and the matter is subjudice.”

Industry watchers say that MPPMCL had terminated the PPA with Renew Power for its solar power projects in the state citing delays in land acquisition for the Rajgarh, project.

After this, Renew Power approached the Madhya Pradesh High Court and the court stuck down MPPMCL’s order. MPPMCL then approached the Supreme Court.

An official from Renew Power said that now the projectis ready to be commissioned, but the company is awaiting Supreme Court decision on the issue.

Renew Power’s website says that it has a 61.20 MW solar power project in Rajgarh, Madhya Pradesh that is ‘work in progress’.

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Published on September 06, 2017
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