India's discoms end force majeure period

However, power companies are mulling to legally contest their non-payment.

State power distribution utilities (discoms) in India are ending their force majeure period and have restarted power purchases they had earlier suspended as energy demand began to pick up, ETEnergyWorld reported.

However, private power companies have started exploring legal options to contest non-payment of fixed charges by states for about 60 days of the force majeure event. Senior officials in private power firms said they have begun seeking legal opinions for sending notices to discoms as power bills for supply in March have started getting due.

Also read: India's electricity demand slump could last through May

The power companies have said that weaker demand due to COVID-19 pandemic does not qualify under the force majeure events listed in power purchase agreements with discoms.

In the absence of consensus amongst state distribution companies and power plants, the power industry is expecting a fresh round of litigation.