Tata Power can’t terminate contracts unilaterally: NTPC

NEW DELHI: Country’s largest power producer, NTPC has said that Tata Power’s unit can’t unilaterally call off pacts with it, and should compensate the state-run firm if it decides to do so. Tata Power Delhi Distribution Company Ltd ( TPDDL) wants to surrender 300 MW electricity it buys from NTPC saying that the fuel costs have gone up.

NTPC supplies around 1,000 MW of power to TPDDL. According to NTPC official: "They (TPDDL) can’t terminate the PPAs (Power Purchase Agreements) with us unilaterally. They have said that the prices of gas have gone up, therefore it has become difficult for them to purchase electricity. If they do (cancel pacts), we should be duly compensated."