ARAVALI TRANSMISSION SERVICE Vs. RAJASTHAN ELECTRICITY

JUDGEMENT

(1.) THESE three appeals are being disposed of by this common judgment and order in view of the fact that they arise out of two separate orders but emanating from the same facts. One order namely, the order dated 30.9.2011 was passed by the Rajasthan State Electricity Regulatory Commission in Petition no RERC/255/11 and RERC/256/11 filed separately by the two appellants in Appeal no.177 of 2011 whereby the Commission declined to adopt the transmission charges arrived at by the Appellants with the M/s GMR Energy Ltd. through the competitive bidding process as contemplated in Section 63 of the Electricity Act,2003. The other Appeal, being Appeal no.181 of 2011 has been preferred by the same Appellants namely Aravali Transmission Service Company Ltd. and Maru Transmission Service Company Ltd against the order dated 24.10. 2011 passed by the State Commission whereby the Commission declined to grant transmission license for transmission of electricity. Thus, the Appellants in the Appeal No181 of 2011 and Appeal No.177 of 2011 are Aravali Transmission Service Company Ltd. and Maru Transmission Service Company Ltd., while the Appellant in Appeal No. 21 of 2012 is Rajasthan Rajya Vidyut Prasaran Nigam Ltd. which challenges the Commission's order dated 30.9.2011 whereby the Commission refused to make adoption of transmission charges arrived at through competitive bidding processes. The facts are these: -

(2.) THE Govt. of Rajasthan by a communication dated 15.10.2008 constituted a State Level Empowered Committee with a view to encouraging competition in private sectors' participation of transmission projects in the State. A Member of the Rajasthan Electricity Regulatory Commission ( RERC) was made the Chairman of the Committee and the other members were Secretary (Energy), Secretary (Planning), Chairman of a Distribution Company and the Director (Technical) of the Rajasthan Rajya Vidyut Prasaran Nigam Ltd. The functions of the Committee were as follows: -

(3.) THE State Level Empowered Committewe in its first meeting on 16.1.2009 identified the schemes to be implemented through competitive bidding process and authorized Rajasthan Rajya Vidyut Prasaran Nigam Ltd. to act as Bid Process Co -ordinator for the purpose of selection of successful bidder as Transmission Service Provider (TSP). In Appeal No.181 of 2011 and the Appeal no 177 of 2011 details have been mentioned about the three projects which were scheduled to be implemented through competitive bidding process. The second meeting of the State Level Empowered Committee was held on 26.2.2009 and in the said meeting it was decided that bidding documents approved by the Ministry of Power, Govt. of India be adopted and Rajasthan Rajya Vidyut Prasaran Nigam Ltd. may go ahead with publication of Request For Proposal (RFP) in newspapers, that single stage two envelope Bid Process be adopted, that cost of the document be fixed at Rs.10, 000/ - and lastly bids should be invited on Build, Own and Operate basis. Now, in two state level newspapers, two national level newspapers, the Indian Trade Journal and in the Financial Times, London, the notice inviting bids were published for wide circulation. On 1.3.2009, Request For Qualification (RFQ), Request For Proposal (RFP) and Transmission Service Agreement (TSA) based on Standard Bidding Documents of the Govt. of India in the Ministry of Power were issued. On 31.3.2009 pre - bid Conference was held and the revised RPF project documents were issued on 15.4.2009. The pre -signed bidding documents were issued on 10.6.2009 and draft of Share Purchase Agreement (SPA) was issued on 1.7.2009. The last date of receipt of RFP and RFQ was fixed on 4.11.2009.