SC directs PSPCL to refund Rs 11 billion to Nabha Power Limited

The Supreme Court has directed PSPCL to pay Rs 11 billion to Nabha Power Limited, a unit of L&T Power Development Limited, to enable the latter to recover its coal washing and transportation costs. In the event of faltering on the payment, PSPCL will be liable to pay the principal amount along with 12 per cent interest to the company. Earlier, PSPCL had rejected L&T’s claim to pay coal washing charges citing that L&T was supposed to use only washed coal for power generation in Punjab as per the PPA and Ministry of Environment, Forest and Climate Change norms. However, L&T contested PSPCL’s claim in the Supreme Court saying that the PPA mentions using washed coal, but the washing charges of about Rs 3.5 billion annually have to be borne by the discom.

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