Andhra govt moves HC against Centre over ongoing row on Power Purchase Agreements
The AP government moved the HC over the orders of the Union Power Ministry, which asked the state to open the Letters of Credit (LCs) for purchase of power.
The Centre said that the LCs had to be opened, to ensure timely payments to the power companies.
A lunch motion petition was filed in the High Court by the power distribution companies (DISCOMS) of Andhra Pradesh.
They claimed that it was not possible to issue LCs, as they were undergoing a financial crisis.
Following this, the court said that it was keeping the power ministry’s orders in abeyance for a period of three weeks and posted the case to November 5 for further hearing.