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Dicoms invoking Force Majeure may deluge legal cases before regulatory commissions

Generators stands disfavouring Dicoms to invoke force majeure condition and dodge PPA obligations, where generators are asked to shutdown their operations and in some cases Discoms are not paying fixed cost Generators. 

Further to give relief to Discoms CERC may come with reduce the late payment surcharge payable by discoms to power projects. A three month moratorium period and directions not to levy any penal actions has already been issued to safeguard debt ridden Discoms from incurring additional dues on discoms.

Generators are major victim of this arising situation, where their payments are stuck with discoms causing a liquidity crunch to pay to ther suppliers in upstream value chain. This may further increase interest charges and additional inventory accumulation cost in amidst of low power demand. If situation worsens, Generators may move to regulatory commissions for immediate resolutions.