The final verdict from the Andhra Pradesh ERC was against the GVK and the AP state government. In the recent G.O.135, the Govt. of A.P. allowed the private power generating companies (including the GVK) to sell the 20% of the total capacity in open market. This is very positive news for the power generating companies in AP as they are allowed to sell the 20% of the power generated in the open market with their own decided cost. This G.O.135 is challenged in the court, claiming this G.O is purely against the public interest. The bench after hearing all the arguments gave the verdict against the G.O.135 which is a very bad news for the GVK.
The ERC proposed three options;
1. Some price hike should happen in favor of the private companies. In the committee it is proposed to be around the 24 paisa.
2. The four projects should supply all the generated power to the AP power distributing authority. Out of that 80% at the CMP and 20% with the hiked price.
3. Some truing arrangement should be taken, if government is unable to use the 20% power.
The above points clearly tells the fact that these four companies(including the GVK) can not sell the 20% power in the open market. For sure, GVK can fell at least 10% from the current levels in the upcoming days.
With thanks
Be and make
To get the complete copy of the verdict:Court verdict against the GVK
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