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Madurai Bench of Madras HC says that TANGEDCO should allow wind generators to leave EPA!!

Wind Generation companies have seen lots of ups and downs in Tamil Nadu!

A long overdue order from the Madurai bench of the Madras High Court has at last come in. With this, the stand taken by TANGEDCO has been proved wrong, once again. 

 

The wind generators who had contracted to supply power to TANGEDCO had to be paid by TANGEDCO as per their Energy Purchase Agreement. Invariably TANGEDCO does not pay for over 12 months from the supply month or more in most cases. It even runs to two to three years in a few cases where they could spot some excuse.

 

Under such circumstances, many wind generating companies and their assets were declared Non Performing Assets by their banks. The companies had repayment issues with the banks for continuously violating the repayment plans. While the private companies were taken to the court by their bankers, the main culprit was  scot free!

 

Wind companies approached TANGEDCO whose Energy Purchase Agreement allowed the wind companies to break the contract if they do not pay on time. TANGEDCO smartly did not allow any of these contracts to be broken either.

 

Imagine a situation where TANGEDCO will take your power, supply to its consumers and get paid in advance by them but will not pay for it to the generators on one side. On the other will not allow them to leave and supply directly to the consumers as well!

 

With all escape routes blocked, the generators had no option but go running to the court. After a long battle which had no legal points to debate but just ‘vaidha points’ for postponing hearings, the court finally gave a verdict that said, TANGEDCO has to allow people who want to go out, to exit the contract.

 

Now, what do you think TANGEDCO would do?

 

They have said, if anyone approaches them for exit of the EPA, please get an order in your name. Court has repeatedly said that if an order is given, it pertains to all similar cases and every such issue should not be brought to the court! But then, these people want every one of the generators to approach the court and get an order in their favour to process their application for exit.

 

It would only increase the litigation and cause a time delay. Is that what TANGEDCO wants?


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