NTDC Claims $13 Million Liquidated Damages from SEL for Delay in Achieving COD


The National Transmission and Despatch Company (NTDC) has asserted its right to Liquidated Damages (LDs) exceeding $13 million from Siddiqsons Energy Limited (SEL) due to delays in achieving Commercial Operation Date (COD). Sources familiar with the matter revealed that NTDC is entitled to LDs as per the Power Purchase Agreement (PPA) and a decision by the Cabinet Committee on Energy (CCoE) prior to signing the PPA.

The Managing Director of NTDC referred to a committee meeting regarding pending issues related to the 330-MW Thar Coal Power Plant by SEL. During this meeting, it was highlighted that NTDC is owed $13.276 million in LDs by SEL for the delay in achieving COD, calculated under Section 9.4 (d) (ii) of the PPA.

The PPA stipulates that if SEL fails to achieve the Commercial Operation Date as per the required timeline, LDs will be applicable. This amount includes payments related to the HVDC Transmission Line, as per the CCoE’s decision.

Despite the PPA not being fully effective due to pending financial closure and the cancellation process for the Letter of Support (LoS) by the Private Power and Infrastructure Board (PPIB), NTDC argues that it has already fulfilled its obligations under the interconnection work described in the agreement.

NTDC’s claim for LDs underscores the importance of meeting contractual obligations and timelines in energy projects to avoid financial penalties and ensure project viability.

Story by Mushtaq Ghumman

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