(ET)
Korea’s state power utility has begun arbitration proceedings against India for not honouring fuel supply commitment to its gas-based power plant in Maharashtra. Korea Western Power Company (Kowepo) owns 40% in Pioneer Gas Power Limited (PGPL) that operates a 388 Mw project in Raigad district.
Kowepo is protected under India-Korea bilateral investment treaty (BIT) and Comprehensive Economic Partnership Agreement (CEPA) and it has sought resolution of issues surrounding its project in six months or $400-million compensation for loss and damages. If the issues remain unresolved after six months, Kowepo will commence international arbitration proceedings under India-Korea BIT and CEPA, a government official said quoting the notice.
