Payment Security Mechanism under Power Purchase Agreements

Payment Security Mechanism under Power Purchase Agreements with GO 120 on 23 October 2019 Government of India, Ministry of Power, New Delhi has issued instructions in regard to Opening and maintaining of adequate Letter of Credit (LC) as Payment Security Mechanism under Power Purchase Agreements by Distribution Licensees.

The Government have accorded sanction for an amount of Rs.577.00 Crores (Five Hundred Seventy-seven Crores) directly to the Central Generating Stations and Thermal Independent Power Producers towards Payment Security Mechanism notified by the Government of India.

The Chairman and Managing Director, APTRANSCO and the Chairman, A.P.Power Coordination Committee has requested the Government to arrange to release the monthly payment of Rs.1198.05 Crores under Letter of Credit Commitment direct to the Central Generating Stations (CGSs) and other generators so as to ensure the uninterrupted Power Supply in the State.

The Department have already drawn an amount of Rs.2267.38 crores under subsidy. The balance amount available in the Budget during the financial year is 2732.62 Crores.

After careful examination, the Government hereby accord sanction for an amount of Rs.1198.05 crores (Eleven Hundred Ninety-eight Crores and Five Lakhs only) from the following Head of Account, towards Payment Mechanism notified by the Government of India, direct to the Central Generating Stations and other Generators. The payment is annexed to this Order:

Sl.No. Head of Account Total Budget Provision in B.E 2019-2020) (Rs. in Crs) Expenditure Incurred (Rs.in crores) Balance amount available (Rs. in Cr.) Amount sanctioned under this Order (Rs. Cr)
1 2801-05-800- G.H.11 – S.H(06)-330-332 3530.00 1715.78 1814.22 1014.70
2 2801-05-789-G.H.11S.H(06)-330-332 769.00 289.74 479.26 95.852
3 2801-05-796-G.H.11S.H(06)-330-332 226.00 84.75 141.25 28.25
4 2801-05-800-S.H(16)330-332 475.00 178.11 296.26 59.252

The Drawing and Disbursing Officer, Energy Department, A.P. Secretariat shall remit the amounts in the Bank Accounts of the Central Generating Stations, which are annexed to this order.
The Payment is made to the Central Generating Stations and other Generators against the subsidy payable to the APSPDCL and APEPDCL in the ratio of 61% APSPDCL : 39% APEPDCL.

Power Subsidy – Letter of Credit – Payment Security Mechanism – Central Generating Stations – Sanction of an amount of Rs.1198.05 crores (Eleven-hundred Ninety-eight Crores and Five Lakhs) – Orders – Issued.
ENERGY (POWER.III) DEPARTMENT G.O.RT.No. 120 Dated: 23-10-2019

  1. From the Govt of India, Ministry of Power, Letters No.23/22/2019-R & R, New Delhi, dated: 28.06.2019; 17.07.2019 & 23.07.2019.
  2. G.O.Rt.No.112, Energy (Power.III) Department, Dated: 24.09.2019.
  3. From the Chairman & Managing Director, APTRANSCO & Chairman, APPCC, Vijayawada, Letter No.CMD/JMD(Fin)/Dy.CCA/Rev&B&R/APPCC/AAO-I/ D.No.1321 /19, dated: 21.10.2019.

ANNEXURE –G.O.Rt.No.120 Energy (Power-III) Department, Dated 23.10.2019 CGSs & IPPs STATIONS ESTIMATED POWER PURCHASE COST FOR NOVEMBER – 2019

Sl.No. Name of the Generator CGSs/ IPPs Capacity Energy Oct’19 Cost (In Rs) A/c No. Name of the Current A/c Bank IFSC Code PAN No.
1 NTPC Limited 1733 926900000 3688398600 10813608669 NTPC Ltd., SBI SBIN0017313 AAACN0255D
2 NTPC NSM Phase-II, Bundled Power (COAL) 600 282189891 1628235670 36645991263 NTPC Ltd., PSM-NSM SBI SBIN0017313 AAACN0255D
3 NVVNL Bundled Power COAL 39 111424854 505868835 62203848541 NTPC Vidyuth Vyapar Nigam Ltd., A/c Solar Power SBI SBIN0020511 AABCN7433J
4 Neyveli Lignite Corporation India Ltd 121 181632559 646242990 10895276180 Neyveli Lignite Corporation India Ltd SBI SBIN0000958 AAACN1121C
5 NPC (MAPS) 16 16436098 46185435 10937612405 Nuclear Power Corporation of India Ltd SBI SBIN0004791 AAACN3154F
6 NPC (Kaiga Unit-I,II &III) 16 82786745 310450294 10937612405 Nuclear Power Corporation of India Ltd SBI SBIN0004791 AAACN3154F
7 NTECL Valluru Thermal Power 82 75622034 604976274 510341000000563 NTPC Tamilnadu Energy Company Ltd Corporation Bank CORP0000577 AABCN9916C
8 NLC Tamilnadu Power LTd., Stage-I – 46175786 266896041 801530110000037 NLC Tamilnadu Power Ltd., Bank of India BKID0008015 AACCN3238N
9 Power grid Corporation of India Limited – – 2170088974 31858364382 Power grid Corporation of India Limited SBI SBIN000996 AAACP0252G
10 Sembcorp Energy India Limited 230 – 347393323 36213475241 Sembcorp Energy India Limited SBI SBIN0013039 AACCT8413D
11 Hinduja National Power Corporation Limited 1040 284556000 1087003920 32623944296 Hinduja National Power Corporation Limited SBI SBIN0013039 AABCH2426D
12 KSK Mahanadi Power Company Ltd., 400 157484836 678759644 62284650758 KSK Mahanadi Power Company Ltd., SBI SBIN0020066 AADCK6843M GRAND
TOTAL 4277 2165208803 11980500000

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