Maharashtra Commission Warns MSEDCL for Non-Payment to Wind Developers

Orders compliance report, cautions on penalty

May 22, 2019


The Maharashtra Electricity Regulatory Commission (MERC) has pulled up state’s DISCOM (MSEDCL) for the continued delay in meeting payment obligations to independent power producers, including delayed payment charge, and for disregarding the previous orders of the commission.

CLP Wind Farms (India) Private Limited and CLP Wind Farms Khandke Private Limited had filed separate petitions against MSEDCL for non-compliance of payment obligations as stipulated in their wind energy purchase agreement (WEPAs), including delayed payment charges which are outstanding for substantial periods of time.

CLP Wind Farms India is the developer of a 106.4 MW wind project at Andhra Lake and another 60 MW wind project at Jath in Maharashtra, while CLP Wind Farms Khandke is the developer of a 50.4 MW wind project at Khandke.

In its order, the commission asked MSEDCL to reconcile the due payment schedule with both the developers within two weeks and submit a compliance report with the commission within two days.

It has ordered MSEDCL to inform the petitioners about the payment time frame within which it would clear the dues, keeping in mind its financial constraints. The commission cautioned the MSEDCL that if it failed to comply with commission’s orders yet again, it would be subjected to penal charges at the rate of 1.25% per month on the delayed payment charges.

Earlier, the commission directed the DISCOM to pay dues to Kamal Encon Industries Limited (formerly KEC Industries Ltd) for the supply of electricity from its 1.65 MW wind power project located in the state’s Dhule district.

This Maharashtra ruling was similar to an earlier order in which the MERC directed MSEDCL to pay dues to wind power generators Shah Lulla Estate Developers and BLP Wind Project (Amberi) Private Limited.

In October 2018, the commission had directed the MSEDCL to pay ₹41.05 billion (~$0.56 billion) in dues to wind power generators in Maharashtra.