Rs 40 crore construction guarantee must go back in two weeks, but APTEL refuses Rs 5.74 crore in bank charges
Clause 6 of a bulk power transmission agreement secures construction and nothing else, so a guarantee kept alive for more than a decade after a 1,400 MW Odisha plant was built cannot be held hostage to the letter of credit under Clause 2, the Tribunal held. The generator that never sought a stay, though, bears its own renewal costs.