HC asks govt to review PPA with Nagarjuna

bangalore: the karnataka high court has directed the state government to reconsider approval of the power-purchase-agreement (ppa) between the karnataka power transmission corporation (kptc) and the private sector nagarjuna power corporation (npc) with regard to the establishment of a 1015 megawatt coal based power generating unit near mangalore. justice r.gururajan on monday allowed in part the writ petition filed by npc and quashed the government order of may 8, 2001 rejecting the ppa. the court directed the government to consider and decide about the same within eight weeks. the petitioner, npc, contended that after prolonged discussions between the kptc, the government had permitted it to establish, operate and run the 5500 crore coal based generating unit, which had the potential of generating direct and indirect employment to 3,000 persons. after the government's permission, the npc secured permission from several agencies and had entered into ppa with kptc. the draft of the ppa which was signed by the kptc had been sent to the government for approval and for securing the state support agreement (escrow). but the government had issued the order rejecting the ppa. the petitioner contended that the same was illegal and unsustainable. on the elaborate discussion of the rival claims with respect to the rulings of the apex court and other high courts, the judge upheld the contention of the petitioner and partly allowed the petition directing the government to reconsider the request. the court further directed the government to pay rs 10,000 to the chief minister's drought relief fund as costs of the petition.