India's Reliance Power seeks arbitration against distribution cos
NEW DELHI, July 2
NEW DELHI, July 2 (Reuters) - India's Reliance Power ltd said it has filed for arbitration against 11 state distribution companies which had contracted to buy power from its delayed 4000-MW power project in the southern state of Andhra Pradesh.
Reliance's project, which depends on imported coal from Indonesia, has been delayed after the south-east Asian nation changed rules to benchmark the export price to the international market, thereby pushing up fuel costs for the proposed plant.
The project is expected to sell power to states at a fixed rate and therefore has become unfeasible.
Reliance said the change in Indonesian rules was beyond the company's control and therefore had sent a dispute resolution notice in March to distribution companies and has received no response from them. (Reporting by Sanjeev Choudhary; Editing by Anand Basu)
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