9.11.2001 wherein the rights of execution and operation of the project were transferred to M/s Patikari Power Pvt Ltd. a special purchase vehicle formed for development, construction and operation of the Project.  The Project has to be commissioned by 01..11.2007 and the approval of PPA is essential to achieve this milestone. 

7.         The financial closure for the Project has been achieved by M/s Patikari Hydro Power Pvt. Ltd, Shimla the co-petitioner, with the Indian Renewable Energy Development Agency(IREDA), but release of funds is held up  for want of Power Purchase Agreement. 

8.                  The draft guidelines furnished by the Honble Commission acknowledge the fact that the tariff has already been decided and other commercial terms and conditions settled bilaterally in principle, the offer of the Honble Commission to deal with the Power Purchase Agreements on arms length basis has been favoured by this individual IPP for the reasons that the concerned financial institution has stipulated time limit for the disbursement of loan amount without which the project cannot be executed. 

9.         In order to facilitate the execution of the Patikari Hydroelectric Project in a cost-effective manner, it is necessary to cut short the delays and hence the urgency in filing of the petition/application for the approval of the Power Purchase Agreement. 

            II.            COMPLIANCE TO THE GUIDELINES 

10.            Compliance to the draft guidelines issued by the Honble HPERC. 

i)                    Power Purchase Agreement facilitating sale of power by Patikari Hydro Power Pvt. Ltd to the Board from the Project has not yet been executed for want of approval by the Commission and same is annexed to this petition as per Annexure-A.  Additional nine copies of the said Power Purchase Agreement are also enclosed with this petition.  

The Power Purchase Agreement also incorporates the Review Clauses and the same have been incorporated under the relevant Articles of PPA.  In terms of the Review Clauses the Power Purchase Agreement shall come into force after its approval by Honble Commission. 

ii)                  Request for approval of the Power Purchase Agreement on forms P.P.1 and P.P.2 are annexed to this petition/application. 

iii)                 An affidavit to the effect that the Power Purchase Agreement has been, by and large, structured in accordance with the draft guidelines furnished by the Honble Commission.  The departures from draft guidelines, wherever made, have been otherwise suitably explained in the petition submitted for kind consideration of the Honble Commission. 

Necessity for the purchase of power by the Board as generated by the project arises on account of the following: