CHAPTER 9

ECONOMIC AND COMMERCIAL ASPECTS

OF THE POWER INDUSTRY
The Electricity Act, 2003 was passed
by Parliament and was notified in June
2003. This Act replaces the three earlier
Acts, namely, The Indian Electricity Act
1910, Electricity (Supply) Act, 1948 and the
Electricity Regulatory Commission Act,
1998. As per the 2003 Act, CEA has inter-
alia been entrusted with duties and functions
relating to collection/recording of
data/information relating to generation,
transmission, distribution, trading and
utilization of electricity and to carry out
studies relating to cost, efficiency,
competition etc. to evaluate the financial
performance of the power sector.

9.1 State Electrical Boards

Prior to enactment of the Electricity
Regulatory Commissions Act, 1998 and the
Electricity Act, 2003, the Power Sector in
the country was governed by the Electricity
(Supply) Act, 1948. As part of the reform
and restructuring exercise of the Power
Sector and the SEBs the Electricity
Regulatory Commission Act, 1998 was
enacted with the objective of rationalisation
of tariffs, having transparent policies
regarding subsidies and promotion of
efficient and environment friendly policies.
The Central Electricity Regulatory
Commission (CERC) was constituted in
July, 1998 to promote competition,
efficiency and economy in the power sector
besides determining tariffs for generating
stations owned and controlled by the Central
Government and inter State transmission of
power etc. The CERC Act 1998 enables





States to set up their own SERCs, which
provide inter-alia for unbundling/
corporatization of SEBs. The States of
Andhra Pradesh, Assam, Delhi, Gujarat,
Haryana, Karnataka, Madhya Pradesh,
Maharashtra, Orissa, Rajasthan, Tripura,
Uttar Pradesh and Uttrranchal have
unbundled their SEBs whereas the States of
Bihar, Chhattisgarh, Himachal Pradesh,
Jharkhand, Kerala, Meghalaya, Punjab,
Tamilnadu and West Bengal have sought
extension for unbundling their SEBs. The
States of Arunanchal Pradesh, Goa, J&K,
Manipur, Mizoram, Nagaland and Sikkim
have only Electricity Departments. As on
31st March' 2005, 9 States (Bihar,
Chhattisgarh, Himachal Pradesh, Jharkhand,
Kerala, Meghalaya, Punjab, Tamil Nadu,
West Bengal) had State Electricity Boards
which, were constituted under Section 5 of
the erstwhile Electricity (Supply) Act, 1948.
The Act was not applicable to J&K.

As many as twenty seven (27) States
(Andhra Pradesh, Assam, Bihar,
Chhattisgarh, Delhi, Goa, Gujarat, Himachal
Pradesh, Haryana, J&K, Jharkhand,
Karnatka, Kerala, Madhya Pradesh,
Maharashtra, Meghalaya, Mizoram,
Manipur, Orissa, Punjab, Rajasthan, Sikkim,
Tamil Nadu, Tripura, Uttranchal, Uttar
Pradesh and West Bengal) have either
constituted or notified the constitution of
SERCs. Tariff orders have been issued by
the Electricity Regulatory Commissions in
18 States.

The detailed position as on
31-03-2005 is given in the Table:






SERC Sl.
No.
States MoP
signed
MoU/
MoA
Unbundled
SEB
F- Functional

Date of
constitution
Tariff/*
ARR
order
Issued
1. Andhra Pradesh MOU Yes F 31.3.1999 Yes
2. Arunanchal Pradesh MOU ED Not Notified
3. Assam MOU Yes F 21.8.2001 Yes
4. Bihar MOU @Extn 6/05 Notified Not Yet
5. Chhattisgarh MOU @Extn 6/05 F 10/2001 No
6. Delhi MOU Yes F 3.3.1998 Yes
7. Goa MOU ED F 1.4.2002 No
8. Gujarat MOU Yes F 12.11.1998 Yes
9. Haryana MOU Yes F 16.8.1998 Yes
10. Himachal Pradesh MOU @Extn 6/05 F 6.1.2001 Yes
11 Jammu& Kashmir MOU ED F 7/04 No
12. Jharkhand MOU @Extn 6/05 F 22.8.2002 Yes
13 Karnataka MOU Yes F 6.10.1999 Yes
14 Kerala MOU @Extn 6/05 F 10.11 .2002 Yes
15. Madhya Pradesh MOU Yes F 18.8.1998 Yes
16. Maharashtra MOU Yes F 6.10.1999 Yes
17 Meghalya MOU @Extn 6/05 Notified Not Yet
18. **Manipur MOA ED Notified Not Yet
19. **Mizoram MOA ED Notified Not Yet
20. Nagaland MOU ED Not Notified
21. Orissa MOU Yes F May, 1996 Yes
22. Punjab MOU @Extn 6/05 F 31.3.1999 Yes
23. Rajasthan MOU Yes F 10.12.1999 Yes
24. Sikkim MOU ED Notified Not Yet
25. Tamil Nadu MOU @Extn 6/05 F 17.3.1999 Yes
26. Tripura MOA Yes F 11.1.2001 No
27. Uttar Pradesh MOU Yes F 10.9.1998 Yes
28. Uttranchal MOU Yes F 5.9.2002 Yes
29. West Bengal MOU @Extn 6/05 F 31.3.1999 Yes
* ARR Aggregate Revenue Requirement
** For Manipur and Mizoram Joint Electricity Regulatory Commission notified (JERC)
@ Extn- Extension up to date shown
ED- Electricity Department.

The States of Delhi, Himachal
Pradesh, Punjab and Kerala have reported
100% metering of consumer premises.
States like Andhra Pradesh, Assam, Delhi,
Goa, Gujarat, Haryana, Kerala, Karnataka,
Madhya Pradesh, Maharashtra, Punjab,
Rajasthan, Tamil Nadu, Tripura, Uttar
Pradesh, and Uttranchal have reported 100%
metering of 11 kV feeders.
SEBs have been following the
accounting principles as laid down in the
Electricity (Supply) (Annual Accounts)
Rules 1985. With the formation of various
corporations/ companies, accounting
principles to be followed will be according
to the Company Law accounting practices.







9.1.1 Financial Performance

The Electricity (Supply) Act, 1948
provided for formation of SEBs with the
required degree of autonomy and entrusted
them with the responsibility of planning and
executing major power projects and schemes
for transmission and distribution and of
operating them with a view to supplying
electricity in the most efficient and
economical manner to meet the growing
demands of power in the country. Although,
initially the concept was that the Boards
should manage their operations in such a
way so as not to incur losses, later on there
was a gradual change in the outlook.
Keeping in view the growing demand for
power and the massive investments that
were required, the Venkataraman
Committee recommended in 1964 that the
SEBs should generate a surplus of 3% after
providing for an interest liability assumed at
6% and 0.5% reserves and 1.5% towards the
then existing Electricity Duty. This was on
the capital base of average of net fixed
assets in use as at the beginning and end of
the financial years plus 1/6 of the annual
administrative and operating expenses
towards working capital. The
recommendations of the Venkataraman
Committee were accepted by the Central
Government in March 1965.

In 1978, the Electricity (Supply) Act,
1948 was amended to provide that the SEBs
should generate such surplus as may be
prescribed by the State Governments, after
taking into account all operating expenses,
depreciation, interest and taxes. The Act
stipulated that, in specifying the surplus to
be generated, after meeting all the operating
expenses including depreciation and interest
the State Government shall provide for a
reasonable contribution towards capital
works. However, no State Government fixed
a target of the surplus to be achieved by the
Boards. The Electricity (Supply) Act 1948
was further amended in 1983 to provide that
the surplus to be generated by the SEBs
from the year 1985-86 should be such as
may be prescribed by the State Governments
but not lower than 3% of the net fixed assets
less consumers contribution as at the
beginning of the year.

However, most of the SEBs are cash
strapped. They are not even able to earn a
minimum Rate of Return (ROR) of 3% on
their net fixed assets in service after
providing for depreciation and interest in
accordance with section 59 of the Electricity
(Supply) Act, 1948. The SEBs accumulated
huge deficit, and dues to Central Power
Generating Companies could not be paid
because of their deteriorating financial
performance. Managerial and financial
inefficiency in the State Sector Utilities
adversely affected capacity addition and
system improvement. The inability of SEBs
to pay their dues in full to Central Public
Sector Undertakings (CPSUs), in turn,
adversely affected the finances and
investment plans of CPSUs.

As a result of reforms and
restructuring of SEBs, various power entities
have come into existence as generating,
transmission, trading and distributions
companies. Participation of Private Sector in
the power industry has added new
dimensions to it. The Financial Performance
of the Power Sector now depends on the
performance of the individual power entity.
Thus the profitability of the power sector
would depend on collective performance. As
of now apart from SEBs in 10 States, there
are 20 Generating, 13 Transmission, 2
Power Trading and 24 Distribution
Companies, registered under the Companies
Act, 1956 and more are expected to be
formed.

In CEA the process of collection
data/ information from all these power
entities is on, and the same is being
processed to analyse the financial
performance of various utilities and to assess
the impact of reforms on them. However, it
may take sometime for a clear picture of the
impact of these reforms to emerge.


9.1.2 Performance of State Electricity
Boards

During 2002-03, SEBs suffered
losses of Rs. 8751.59 crores without subsidy
and Rs. 2677.39 crores with subsidy
resulting in Rate of Return as (-) 24.79%
(without subsidy) and (-) 7.58% (with
subsidy). The average realisation from sale
of power was 287.44 Paise/unit against the
average cost of supply of 335.49 Paise/unit.
The SEBs incurred loss of Rs. 10564.97
crores from the agricultural consumers,
Rs. 389.41 crores from domestic consumers,
while they earned profit of Rs. 1547.78
crores from commercial consumers,
Rs. 2072.38 crores from industrial
consumers and Rs. 221.64 crores from
railways. The details of average cost of
supply and average realisation covering all
sectors are as follows:

Average Cost of Supply and Average Realisation of Electricity
From All Sectors (including Agriculture)
(in Paise/Unit)
Year Average Cost
of Supply
Average Realisation
(including Agriculture)
Gap
80-81 41.90 32.30 9.60
84-85 65.07 49.39 15.68
89-90 105.68 78.58 27.10
90-91 112.32 86.84 25.48
91-92 120.23 95.32 24.91
92-93 139.02 112.28 26.74
93-94 154.78 125.27 29.51
94-95 156.00 134.23 21.77
95-96 179.38 151.28 28.10
96-97 205.35 176.13 29.22
97-98 228.16 192.79 35.37
98-99 246.98 198.91 48.07
99-00 * 296.19 225.66 70.53
00-01
#
314.62 249.24 65.38
01-02
$
348.33 266.99 81.34
02-03
@
335.49 287.44 48.05
* For 14 SEBs only # For 14 SEBs only $ For 8 SEBs only @ For 9 SEBs only
(The data above is based on the Annual Accounts of the SEBs)

Total Commercial Losses of SEBs and other Power Utilities are given below.

Commercial Losses of SEBs and other Power Utilities
Year Losses (Rs. crores)
1991-92 3000
1992-93 4560
1993-94 5060
1994-95 6125
1995-96 8770
1996-97 11305
1997-98 13963
1998-99 20860
1999-00 26353
2000-01 25259
2001-02 27068
2002-03 21064

9.1.3 Settlement of Dues

The one time settlement scheme
(launched in 11
th
May, 2001) of dues
owed by SEBs/Utilities to CPSUs,
aimed at making loss making power
utilities bankable. In terms of the
Scheme 60% of interest/surcharge on the
delayed payments/dues as on 30.9.2001
was waived and the rest of the dues were
securitised through tax-free bonds issued
by respective State Governments.
Considerable progress has been made
since in the settlement of dues payable
by SEBs to CPSUs and the Railways.
All 28 State Governments signed the
Tripartite Agreement envisaged under
the scheme, which was between the
State Government, Reserve Bank of
India and the Government of India. Out
of these, 28 States have issued bonds
amounting to Rs. 29,606.1256 crore.
The Government of the National Capital
Territory of Delhi securitized its
outstanding dues by converting the dues
into long-term advances of Rs. 3,316.28
crore payable to the CPSUs concerned
separately under bi-partite Agreements,
as they do not have the power to issue
bonds.

With securitization of past dues
by the State Governments and creation
of the discipline of full payment for
current supplies, the raising of the
requisite resources from the market for
the ambitious capacity addition
programme of the CPSUs would become
feasible. State Governments can use this
to give their power utilities clean balance
sheets to enable them to access the
markets for funds to finance their
investment programme.

9.1.4 Tariff and Average Rates

In-fulfillment of CEAs
obligation under Section 73(i) & (j) of
the Electricity Act, 2003, the publication
Tariff And Average Rates Of
Electricity Supply And Electricity Duty In
India-March 2005 was compiled/ prepared
after analysis of consumer tariffs notified by
various State Electricity Boards/ Power
Utilities and Tariff Orders issued by State
Electricity Regulatory Commissions.

This publication gives a picture of
the consumer tariff applicable in the various
States of the country, which covers more
than 40 States/ Utilities. Since the
publication of the last issue of this book in
2003, 29 States/ Utilities revised their
consumer tariffs; in other states the tariffs
notified continue to be charged at the rates
notified earlier.

9.2 Tariff studies

Based on the tentative financial
package for financing of the power projects,
tariff studies are conducted in accordance
with GOI tariff notifications and CERC
tariff regulations issued from time to time.
The variations in the foreign exchange rates
are also duly taken in to account to study its
impact in the projects which are having
foreign equity/ foreign debt etc.

During the year, tariff studies were
carried out on the following schemes/
proposals:

i) Tipaimukh HEP (6x250 MW) in
Manipur by NEEPCO.

ii) Turial HEP (2x30 MW) in Mizoram by
NEEPCO.

9.2.1 Nuclear Power Tariff Fixation

CEA has been examining the power
tariff proposal of NPCIL with regard to all
nuclear power stations for recommending to
DAE for notification of tariff under the
DAE, Act.

During the year 2004-05, tariff for
infirm power and provisional tariff effective
from CoD of Tarapur Nuclear Power Station

Unit 3 & 4 (1080 MW) was finalized for
recommendation to the Department of
Atomic Energy.

9.2.2 Tariff Fixation for Tala HEP,
Bhutan

Govt. of India and Royal Govt.
of Bhutan had agreed to set up Tala
HEP, in Bhutan wherein GoI shall
provide 60% grant and 40% debt and
India shall buy surplus power at a price
to be mutually agreed as per principles
laid down in the agreement. The project
is likely to be commissioned in March
2006. Meetings are being held between
the two countries to negotiate the tariff.
CEA participated in the negotiations
along-with the Ministry of Power, MEA,
Power Trading Corporation etc. The last
meeting was held in Delhi on
29.12.2004.

9.3 Formulation of Tariff Policy-
advice in connection therewith

Consultation is to be provided to
the Ministry of Power on the Tariff
Policy under Section 3(1) of Electricity
Act, 2003. Draft tariff Policy prepared
by MoP was studied in CEA and
comments offered on the same after
detailed examination.

9.4 Certification for Deemed
Export Benefits

As per para 8.2 (g) of the Exim
Policy read with Para 8.6.6 of the
Handbook of Procedure Volume-1, the
supply of capital goods and spares (up to
10% of the FOR value of the capital
goods) to the power projects shall be
entitled for Deemed Export Benefits
provided the same is certified by the
Central Electricity Authority, CEA and
the International Competitive Bidding
procedures have been followed, at IPP
Stage, for supply of capital goods to the
power projects by the domestic supplier

9.4.1 Deemed Export Benefits

During the year, proposals regarding
issuance of certificates in respect of supplies
as Capital Goods for the following power
projects were examined: -

(i) Main Electro mechanical equipment
along-with associated 33 KV Double
Circuit Transmission Line for Sugur
Mini Hydel Scheme (3x1.5 MW) of
SLS Power Industries Ltd,
Bangalore.
(ii) Supply of 400 KV Switchyard
Turnkey Package for NTPCs
Talchar STPP, Stage-II (4x500 MW)
in Orissa.
(iii) Supply of Turbines, Generators,
Auxiliaries, Switchyard and all other
Electro-Mechanical equipment for
the following Projects:-

a) Mandagere Mini Hydel Scheme of
Bhoruka Power Corporation Ltd,
Bangalore.
b) Kanchanguddam Mini Hydro (3x2 MW)
Project in Karnataka of M/s Pusala
Power Projects Ltd, Hyderabad
c) Varahi Tail Race Mini Hydro (3x7.5
MW) Project in Karnataka of M/s
Sandur Power Corporation, Bangalore
d) Ranganathswamy Mini Hydro (3x8.25
MW) Project in Karnataka of M/s
Pioneer Power Corp. Ltd, Bangalore
e) Rajolibanda Mini Hydro (1x4.5 MW)
Project in Karnataka of M/s Sree Swarna
Energy Ltd. Hyderabad
f) Neria Mini Hydro (2x4.5 MW) Project
in Karnataka of M/s Bhoruka Power
Corp. Ltd, Bangalore
g) Chhayadevi Mini Hydro (2x12 MW)
Project in Karnataka of M/s Bhoruka
Power Corp. Ltd, Bangalore
h) Hemagiri Mini Hydro (2x2 MW) Project
in Karnataka of M/s Trishul Power Pvt.
Ltd, Bangalore

Certificates were issued for availing
Deemed Export benefits by the indigenous
suppliers under the EXIM Policy to the

projects at Serial Nos (i), (ii), and {(iii) -
a,b,c&d} above.

9.4.2 Concession/ Exemption of
Custom/ Central Excise Duties

Under Chapter-4 of the Exim
Policy, on the Duty
Exemption/Remission Scheme duty free
import of inputs required for export
production are allowed. Also under
Chapter- 5 on Export Promotion Capital
Goods Scheme (EPCG) import of
Capital Goods for pre-production,
production and post production at 5%
custom duty to an export obligation
equivalent to 8 times of the duty saved
on capital goods imported under EPCG
Schemes to be fulfilled over a period of
8 years reckoned from the date of
issuance of license are allowed.

9.4.2.1 In this connection references
were received from, the Ministry of
Commerce for the following cases, the
same were examined/processed during
the year and comments/
recommendations were furnished to
MoP/ other Central Government
Departments:-

(i) Nexus approval of import item
i.e. 24.5 MW Steam Turbine
(with auxiliaries) with Export
Product item by EPCG license
holder industry M/s Indo-Gulf
Corp. Ltd. Bharuch, for claiming
benefits under Exim Policy.
(ii) Duty Exemption on Primary
Aluminum application of All
Karnataka Cable Manufactures
Association (AKCMA).
(iii) Application for reduction in
Custom Duties on 540 MW
Captive Power Plant of M/s
Balco Ltd.
(iv) Grant of Advance License for
import of HSD against export of
rice for Captive Power Plant by
some Rice Processing Units of
Haryana and Delhi.
(v) Proposal of IEEMA for Duty
Concessions on Energy Efficient
Lamps
(vi) Application for issuance of Import
License for Second Hand (More than
10 years old) 43 MW Combined
Cycle Power Plant by M/s Steel
Corporation of Gujarat Ltd, Mumbai.
(vii) Inclusion of Super Kerosene Oil
(SKO) and Light Diesel Oil (LDO)
for Import against export of Cotton
Yarn in respect of Standard Input.
Output Norms (SION) list under the
Duty Exemption Scheme.
(viii) Amendment in SION list under Duty
Exemption Scheme on the
application of M/s Nestle India Ltd.
Gurgaon.
(ix) Taxation proposals for Finance Act
2005- Suggestions for amendments
in the Customs Tariff and Central
Excise Tariff applicable to Power
Sector

9.4.2.2 Miscellaneous References on
Technical/Financial Matters

During the year, the following
references on issues concerning technical/
financial matters were examined and views/
comments/ recommendations were sent to
MoP/ other departments.

(i) Cost benefits analysis in regards to the
Life Extension proposal of Indra
Prastha Thermal Power Station
(ii) Transfer Price of Lignite fixed by
Board of Directors (BoD) of Neyveli
Lignite Corporation.
(iii) Mega Status and Deemed Export
Benefits for 1000 MW Raigarh
Thermal Power Project.
(iv) International Standard Industrial
Classification (ISIC) of all Economic
activities, Revision-4 and Central
Production Classification (CPC),
Version 1 reference from Ministry of

Statistics and Programme
Implementation.
9.5 Examination of Proposals for
External Assistance/Bilateral Co-
Operation

The following proposals/
documents received from the Ministry of
Power/ SEBs/ Power Utilities/ MoP
relating to for External Assistance/
Bilateral co-operation with other
countries on the power sector were
examined and comments thereon were
sent.

(i) First BIMSTEC Summit held in
Bangkok, Thailand on 30-31 July,
2004-Speech by PM India and the
Summit Declaration follow up
action regarding
(ii) Follow up of the decision taken in
the 9
th
Session of Indo-Russian
Joint Working Group on Power
and preparation of Agenda for the
10
th
Summit
(iii) 3
rd
Indo-UK Joint Working Group
held in New Delhi
(iv) Protocol of the 6
th
Session of Indo-
Czech Joint Committee Meeting
(v) Indo Norwegian Programme for
Institutional Cooperation (IND-40)
between PTC and SWECO Groner
AS, Norway.

9.6 The Electricity Act, 2003

The Electricity Act, 2003 was
enacted on 10
th
June 2003. The
following amendment to the Act has
since been issued:-

Extension of continuation of SEBs
beyond a period of one year from the
10
th
day of June, 2004 vide MoPs
notification dated 09.06.2004.

9.6.1 Formulation of Rules &
Regulations under the
electricity Act, 2003

As per the requirements of the Act,
the pre-publication of the following
regulations was made on 18
th
December,
2004 for inviting comments/ suggestions
from various stake-holders in the Power
Sector by issuing a public notice in the
various newspapers and putting notice on
the website of CEA.
Rules of procedure for tansaction of
business by CEA
Installation and operation of Meters
Grid connectivity & Standards
Concurrence of Hydro Electric
schemes

The last date for receiving comments
on the regulations was specified as 7
th

January, 2005. The comments/ suggestions
from various agencies such as : Maharashtra
Electricity Regulatory Commission, M/s
Tata Power Co.Ltd., Ahmedabad Electricity
Co. Ltd., PGCIL, CRISIL, CERC,
NTPC,NHPC, Lanco Power Co., Bombay
Electricity Supply & Transmission Co.,
Ministry of Railways, Govt. of Madhya
Pradesh, Gujarat Electricity Transmission
Ltd., Andhra Pradesh Electricity Regulatory
Commission, Chhattisgarh State Electricity
Regulatory Commission, Confederation of
Indian Industires, Orissa Electricity
Regulatory Commission, DVC, Calcutta
Electricity Supply Corporation Ltd.,
U.P.Electricity Regulatory Commission
have been received. These suggestions on
the above regulations are under active
consideration of CEA and the regulations
will be finalized shortly. The regulations in
respect of concurrence of Hydro Electric
schemes have been finalised by the
Authority and sent to Ministry of Power for
notification.

The other regulations of CEA on the
O&M of Transmission System, Safety
Regulation & Standards, Grid Standards,
Technical Standards (for Construction of
Hydro and Thermal projects as well as
Transmission lines/ Sub-Stations/
Distribution Systems), Timely Completion

of Power Schemes, Data Collection and
Publication thereof are at an advanced
stage of formulation.

9.7 Status of Power Sector Reforms
in States

27 Sates have constituted SERCs,
4 nos. during the year 2004-05.
29 States have signed MoUs/ MoAs,
one no. during the year.
11 SEBs have been unbundled,
2 nos. during the year 2004-05.

9.7.1 Examination of CERC/ SERC
Cases

(a) Gujarat Electricity Regulatory
Commission (GERC)
Draft supply code GERC 2004
Draft concept paper General
provision on Licensing
Terms and Conditions of tariff and
Concept Papers on Multi year Tariff
Principles
Procedure for Filing Appeal Before
the Appellate Authority.
Security Deposits to be paid by
consumers to the Distribution
Licensees and Licensees Power to
recover expenditure and other
Miscellaneous Charges.
Licensees Power to recover
Expenditure incurred in providing
supply and other Miscellaneous
charges and Licensees power to
Recover Expenditure and other
Miscellaneous charges

(b) Himachal Pradesh Electricity
Regulatory Commission (HPERC)
State Advisory Committee-
Regulation 2004
Concept note on cost of supply
methodology

(c) Karnataka Electricity Regulatory
Commission (KERC)
Consumer complaints Handing
procedure
Duty of Licensee of supply electricity on
request- Regulation 2004
Recovery of expenditure for supply of
electricity
Draft Karnataka Electricity Regulatory
Commission (Fees) regulations
Eligibility conditions and duties of
electricity traders-Regulation 2004
Power procurement licensee-Regulation
2004
Draft consultation Paper on Back ground
issues on treatment of Renewable
Energy Projects in the light of Electricity
Act,2003
Draft KERC (Licensing) Regulations,
2004
Terms and conditions for Open Access

(d) Maharashtra Electricity Regulatory
Commission (MERC)
Expert Committee to advise MERC for
resolving disputes between BSES and
Tata Group of Companies.

9.8 Assistance to Ministry of Power

Examined reference received from MoP
with regard to the draft National
Electricity Policy and the draft Tariff
Policy.

9.9 Court Cases

Writ Petition in the High Court of
Jabalpur, MPSEB v/s CEA and NTPC
regarding clarification of deemed
generation due to shortage/ non-
availability of gas for Gandhar and
Kawas GPS. Vakalatnama has been filed
and case is yet to be admitted.
Writ Petition No.1471 of 2004 Tata
power Company Limited v/s Reliance
Energy Limited & Others in the High
Court, Mumbai and affidavit was filed
by CEA.
Interlocutary Application No.1 for
modification of court order dated 2
nd

May, 1977 in Petition for special leave
to appeal (Civil) No.7734 of 1997 filed
by Centre of Indian Trade Union against

state of Maharashtra in Supreme
Court and affidavit has been filed by
CEA.

9.10 Legal Assistance/ Advice to
Utilities

Examined the draft tender documents
and NIT for appointment of Review
Consultant for review and upgrading
the Detailed Project Reports (DPRs)
of new hydro projects.
MoU signed between Gujarat
Electricity Regulatory Commission
(GERC), Ahmedabad for providing
consultancy to Power Purchase
Agreement (PPA) for Akhnol CCGT
(1095 MW) and Dhuvaran CCGT
(107 MW) Power houses.
DPRs of four Hydro electric projects
viz. Tapovan Vishnugad HEP
(520MW), Uttranchal, Loharinag
Pala HEP (600 MW), Uttranchal,
Matnar HEP (60 MW), Chattigarh,
Chuttak HEP (44 MW), J&K were
examined.
Examined proposals of transfer of
TEC in respect of Sringar HEP.
Uttranchal and Nagarjunsagar Tail
Race Pond HEP, Andhra Pradesh
from M/s NHPC to M/s Alaknanda
Hydro Power Co.Ltd. and from
Andhra Pradesh State Electricity
Board to Andhra Pradesh Generation
Co.Ltd. respectively.
Examined the draft MoU in respect of
legal aspects for transfer of land
acquired by PGCIL to NEREB.

9.11 Arbitration Cases

Appointed Sole Arbitrator for
adjudication of the disputes and
differences arising between M/s Global
Energy and Dept. of Power, Govt. of
Tripura under the Power Purchase
Agreement.
Revocation of appointment of Arbitrator
for resolution of dispute between M/s
Shanti Conductors Ltd. & WBSEB.
Resolution of dispute between
APTRANSCO & M/s Lanco on eligible
installed capacity of the project for
payment of fixed charges as per the
provisions of Power Purchase
Agreement.
Appointed Sole Arbitrator for resolution
of dispute between M/s NHPC &
HPSEB regarding Chamera-1 HEP
(3x180 MW).

******