- MP offers fresh sops to pvt power cos

  • 05/03/1998

  • Business Standard (New Delhi)

The Madhya Pradesh government has announced fresh sops for independent power producers in the state whereby their revenues will be protected in case of a delay or a freeze on electricity tariff hikes owing to election-related compulsions.Under the new initiative that has been kicked off, the consumer base for IPPs will be increased in the event that their escrow cover fails to meet requirements, typically in cases where the governemnt fails to hike tariffs to anticipated levels.Thereby, the sop will also serve to prevent power project promoters in Madhya Pradesh from invoking state government guarantees.