GMR Energy, a wholly-owned subsidiary of Bangalore-headquartered infrastructure company, GMR Infrastructure has received a payment of Rs 100 crore from Tamil Nadu Electricity Board in accordance with an interim order of the Appellate Tribunal for Electricity (APTEL).
There is a dispute between the company and the state electricity board with respect to power purchase agreement, land lease rentals among others, and the company has appealed before the state appellate authority. The state authority had directed the board to repay Rs 480 crore in six installments. However, the verdict has been challenged before the national body and it has directed the board to start repayment pending final orders.
GMR Energy has a 15-year power purchase agreement with the Tamil Nadu State Electricity Board which ends in 2016 after which the cost structure will be renegotiated with the board. GMR has a 200 Mw power plant in Chennai. As per the orders of the national appellate authority, the Tamil Nadu state electricity board have to make the first installment payment of Rs 100 crore and Rs 60 crore thereafter every month for the balance amount of Rs 480 crore.crackcrack
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