Uttar Pradesh Power Corp asks operators to cut rates, increase coal stocks

UPPCL has directed generation companies (gencos) to increase coal stocks to meet their requirements

As summer heat approaches its peak in the ongoing election season, the fear of inadequate coal supply has led to an unlikely situation. Uttar Pradesh Power Corporation Limited (UPPCL) has asked private power operators to reduce power rates and use the payment made to them for purchasing coal. 

This has landed several players in a fix as they are unable to repay their lenders putting their accounts under severe financial risk. UPPCL is even looking to amend the power purchase agreements (PPA) it has with these companies and is regulating payment and monitoring their coal stock. 

In a series of letters issued