(ET)
South Korean state owned power utility Kowepo has begun international arbitration proceedings against India in Singapore for not honouring a fuel supply commitment to its Maharashtra power plant.The development comes about a year after the company issued notices to the government seeking gas supplies within six months. It also comes on the back of the Centre seeking to end the impasse over executed contracts between renewable energy companies and the Andhra Pradesh government in order to safeguard clean energy investments.
Korea Western Power Co (Kowepo) owns a majority stake in Pioneer Gas Power Plant Ltd (PGPL), which operates a 388 MW project in Maharashtra’s Raigad district. It’s covered by the India-South Korea bilateral investment treaty (BIT) and the Comprehensive Economic Partnership Agreement (CEPA). Kowepo has sought about $400 million in compensation for loss and damages, a government official said. PGPL didn’t respond to queries.
