Andhra govt moves HC against Centre over ongoing row on Power Purchase Agreements
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Andhra govt moves HC against Centre over ongoing row on Power Purchase Agreements

By The News Minute calender  16-Oct-2019

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.

     

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