Sen further said, "Yes, the company feels that it could be little bit more economical so they are examining the contract and discussing with the owners of BEL to have more beneficial contract on both parties."
BEL is a subsidiary of Bhushan Steel Ltd.
When asked it the company has begun the process of cancelling PPA, Sen said that "I don't know whether power purchase agreement is being cancelled or not but we have a power agreement with a company Bhushan Power that contract is under discussion."
Bamnipal Steel Ltd (BNPL), a wholly-owned subsidiary of Tata Steel, had earlier successfully completed the acquisition of controlling stake of 72.65 per cent in Bhushan Steel Ltd.
Tata Steel Ltd had won the bid to acquire debt-laden Bhushan Steel Ltd through the insolvency process.
The bankrupt firm was among the 12 stressed assets the RBI had referred for NCLT proceedings last year.