NEW DELHI, July 2 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
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)