Karnataka HC directs Escoms to clear dues to power generators without delay
The Hindu
Direction comes after it was observed that some Escoms had not honoured their obligations
The High Court of Karnataka has directed all State-owned Electricity Supply Companies (Escoms) to henceforth make prompt, regular and timely payments in favour of the power generators without any delay in relation to all future bills/invoices of the power generators.
Also, the court directed Escoms to forthwith open/renew monthly irrevocable letters of credit in terms of the Power Purchase Agreements (PPAs) in favour of the power generators to enable and ensure payments of all amounts due to the power generators from Escoms. Besides, the court said that all Escoms should honour and discharge their duties, obligations and liabilities under the PPAs between the power generators and Escoms.
Justice S.R. Krishna Kumar issued the general guidelines for all Escoms after observing that Hubballi Electricity Supply Company Ltd. (Hescom) and Gulbarga Electricity Supply Company Ltd. (Gescom) had a consistent pattern of failure to make payments to various wind and solar power generators.
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