Sarda Energy & Minerals Limited has informed the Exchange about General Updates
SARDAEN · price
▲ positive · ▼ negative · ● neutral filings · teal = economic event · numbered = multiple that day (click to pick). Times IST.
Awaiting price reaction for this filing.
Sarda Energy's subsidiary, Madhya Bharat Power Corporation Ltd. (MBPCL), has terminated its long-term Power Purchase Agreement (PPA) with Chhattisgarh State Power Distribution Company Ltd. (CSPDCL) with immediate effect. The PPA was for supplying power from MBPCL's 113 MW Rongnichu Hydropower Project. The termination was triggered by CSPDCL's non-compliance with the terms of the PPA. MBPCL states the decision was taken consciously as per the PPA's provisions and believes it is in the company's best long-term interest. No details have been shared yet on replacement offtake arrangements or any financial implications.
This is a significant development since the PPA governed the sale of power from a 113 MW project, so investors should expect some impact on segment revenue. However, the company is framing the move positively, suggesting the counterparty's failures would have hurt returns more than termination. Watch for further updates on alternative buyers, compensation claims, or revised guidance.