Mumbai, June 24: Shares of Jaiprakash Power Ventures Ltd on Monday tumbled by over 15 per cent after its 400 MW Vishnuprayag hydro-power plant in district Chamoli, Uttarakhand was shut down following heavy rain in the state.
Following the news, shares of the company opened the day on a weak note and as the trade progresses it tanked 15.19 per cent to Rs 17.30 -- its all-time low on the BSE. At the NSE, the scrip plunged 14.56 per cent to a one- year low of Rs 17.30.
Jaiprakash Power Ventures operates 400 MW Vishnuprayag hydro-power plant located across river Alaknanda in Chamoli district of Uttarakhand. "While the company is taking effective steps to restore generation, assessment of damages due to the said flood conditions shall be made on restoration of commutation and connectivity to barrage site.
"Unprecedented floods in river Alaknanda has resulted in Force Majeure event for 400 MW Vishnuprayag Project, commercial aspects of which shall be addressed in accordance with Power Purchase Agreement between Uttar Pradesh Power Corporation Ltd (UPPCL) and the company," Jaiprakash Power Ventures said in a filing to the BSE.
It said during the onset of monsoon, Uttarakhand, including district Chamoli where the company's 400 MW hydro-power plant is situated, has witnessed very heavy rain causing unprecedented flood of high intensity with excessive silt, boulders and other materials in Alakananda river.
This is resulting into disturbances to river protection works and leading to shutdown of the barrage operations and power generation with effect from June 16, 2013. The term force majeure relates to the law of insurance and is frequently used in construction contracts to protect the parties in the event that a segment of the contract cannot be performed due to causes that are outside the control of the parties, such as natural disasters, that could not be evaded through the exercise of due care.