New Delhi: The Supreme Court will take up on December 10 power utility Gujarat Urja Vikas Nigam's plea seeking quashing of a Gujarat High Court order that asked it to award contract to PTC for supply of 440 MW electricity at Rs 2.89 per unit.

A bench headed by Justice Ashok Bhan while refusing to stay the High Court order posted the matter for hearing on December 10. The High Court had passed the order after PTC and Jindal Power had challenged cancellation of Letter of Intent awarded to them by GUVN and awarding of the contract to Adani Enterprises.

Challenging the High Court's order, the utility said it had "validly exercised the right to cancel the LoI" in the larger consumer interest as PTC and Jindal Power had failed to fulfil contractual obligations. The petition filed through advocate Hemantika Wahi said there was enough capacity available even after awarding of the contract to Adani and the High Court had proceeded on a wrong footing that the bids were invited for 2,000 MW. The High Court had failed to consider the fact that the issue is not the quantum of power required by the petitioner but the submission of the bank guarantee within the prescribed time and price, it added.

Under the terms of the bid, the three successful bidders -- Adani, PTC and Jindal Power -- were to execute the power purchase agreement (PPA) for different quantum of electricity within 30 days of the letter of award. While the respondent and Jindal failed to give a bank guarantee for Rs 33 crore within the prescribed time, Adani had entered into a PPA after furnishing the same.

Source : PTI