Power supply discontinued to 3 Indian distribution firms

Coastal Gujarat Power has discontinued power supply to three Rajasthan state-owned Distribution Companies.

This was due to non-compliance on payment security related issues.

The power supply comes from Coastal Gujarat's Mundra Ultra Mega Power Project.

The company has sent several notices to the three Discoms, which account for 10% of the total capacity from the Mundra UMPP.

"Due to consistent failure on the part of Rajasthan Discoms as Procurers to fulfill the obligations including Collateral Arrangements in spite of repeated and regular reminders, CGPL was constrained to issue notice to the Rajasthan State Discoms", the company stated.

CGPL pointed out that there are large outstanding dues against the three discoms which have repeatedly failed to make their payments on time.

The Mundra power plant is already in a difficult situation on the balance of payments front as the recovery through tariffs is less than the spending incurred, the company noted.