Reliance PowerBSE 0.07 % has moved electricity regulator CERC seeking compensation from the government for cost escalation at its Sasan ultra mega power project due to “unprecedented” depreciation of the rupee.
The 4,000 MW UMPP at Sasan in Madhya Pradesh is being set up by a special purpose vehicle — Sasan Power Ltd. The total estimated cost of the project is Rs 20,000 crore.
The company has filed a petition with Central Electricity Regulatory Commission, “under the section 79 of the Electricity Act, 2003 for compensation due to unprecedented, unforeseen and uncontrollable depreciation of the Indian Rupee,” the petition said.
Reliance Power has filed another petition with the Commission seeking relief and compensation due to increase in construction cost for the Sasan project.
When contacted a Reliance Power spokesperson said, “Adjustment sought by the company are as per the provisions of the PPA signed by the company with the procurers in 2007.”