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Tata Power Delhi Seeks to Exit Purchase Pacts as Fuel Soars

Tata Power Delhi Distribution Ltd., which lights up every third home in India’s capital, wants to surrender purchase contracts for 340 megawatts of electricity because of higher fuel costs passed on by producers.

The company is seeking the regulator’s approval to end about 20 percent of its long-term agreements with coal and natural gas-fired plants, Chief Executive Officer Praveer Sinha said in a telephone interview. Suppliers include NTPC Ltd., the nation’s biggest power producer. The surrendered power will need to be allocated to other buyers, Sinha said.