IN THE MATTER OF SUO MOTU PROCEEDINGS ON THE REPORT SUBMITTED BY THE COMMITTEE ON COMPENSATORY Vs. STATE

JUDGEMENT

(1.) The Commission had issued the Order in Case No. 68 of 2012 on 21 August, 2013 in the matter of Petition filed by Adani Power Maharashtra Limited related to its dispute with Maharashtra State Electricity Distribution Company Limited (hereinafter referred to as "MSEDCL"). In the said Order, the Commission directed the parties in Case No. 68 of 2012 to constitute a Committee, which was required to submit a report outlining the principles and the precise mechanism for calculation of compensatory charge within three (3) months from the date of said Order. A Committee was formed vide a resolution of Government of Maharashtra (hereinafter referred to as "GoM") dated 9 December, 2013. The Committee has submitted its report (hereinafter referred to as "Committee Report") to the Commission on 18 February, 2014. The Commission has carried out the suo motu proceedings on the Committee Report under the present Case, i.e., Case No. 63 of 2014.

(2.) In Case No. 68 of 2012, APML approached the Commission under Section 86 (1) (f) of the Electricity Act, 2003 (hereinafter referred to as "EA -2003") for adjudication of dispute and for return of performance guarantee pursuant to the termination of its Power Purchase Agreements (PPA) with MSEDCL on 16 February, 2011, and in the alternative, revise the Tariff under the PPA.

(3.) APML is a generating company developing a thermal power station at Tiroda (hereinafter referred to as "Tiroda TPS"). APML's parent company, Adani Power Limited (APL) had participated in a Case 1 bidding process conducted by MSEDCL under Stage -I of the competitive bidding process. MSEDCL had conducted the said bidding process in accordance with the Guidelines for Determination of Tariff by Bidding Process for Procurement of Power by Distribution Licensees issued by Ministry of Power, Government of India under the provisions of Section 63 of the EA -2003 (hereinafter referred to as "Competitive Bidding Guidelines"). APL was selected in the RfQ stage. APL submitted its RfP response on 20 February, 2008 and specified Lohara (West) and Lohara (Extension) coal blocks (together referred hereinafter to as "Lohara coal blocks") allocated to it as one of the sources of fuel. APL also stated that the balance requirement of fuel will be met by coal supply from (Coal India Limited) CIL or its subsidiaries and imported coal.