Torrent Power terminates 300 MW PPA, to pay ₹39.78 Cr damages
Torrent Power Limited announced the termination of a 300 MW wind power Power Purchase Agreement (PPA) with Solar Energy Corporation of India Limited (SECI). The PPA, initially awarded via a Letter of Award on July 14, 2022, and formally entered into on May 04, 2023, was for a project developed by its wholly-owned subsidiary, Torrent Saurya Urja 2 Private Limited. The project faced significant delays due to Force Majeure events and external infrastructure readiness issues, including transmission connectivity and GNA operationalization. Despite extensions granted by SECI, the continued uncertainty regarding the Scheduled Commercial Operation Date (SCOD) led to the termination. Consequently, Torrent Power will pay liquidated damages amounting to ₹39.78 crore as per the contractual provisions.
Key Highlights
- Torrent Power subsidiary's 300 MW wind PPA with SECI terminated.
- Project faced delays due to Force Majeure and infrastructure issues.
- SECI granted extensions, but termination was deemed necessary.
- Company to pay ₹39.78 crore in liquidated damages.
- Termination due to continued uncertainty in project implementation.
Price Impact
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