POWER GRID CORPORATION OF INDIA LIMITED Vs. MAHARASHTRA STATE ELECTRICITY DISTRIBUTION COMPANY LIMITED

JUDGEMENT

(1.) THIS order is being issued for implementing the judgment of the Appellate Tribunal for Electricity dated 12.9.2014 in Appeal No. 257 of 2013.

(2.) THE background of this case is that the Board of Directors of PGCIL vide letter dated 25.2.2008 accorded the investment approval for establishment of the scheme "Western Region System Strengthening Scheme -VI", to be executed within a period of 33 months from the date of investment approval, i.e. by December 2010. PGCIL filed Petition No. 109/TT/2012 covering two assets (out of eight assets covered under the said scheme), namely "ICT III at 400/220 kV Pune Sub -station along with associated bays" (hereinafter referred as to "Asset -1") and Combined Assets of ICT III at 400/220 kV Pune Sub -station along with associated bays and ICT III at Wardha Sub -station along with associated bays (hereinafter referred as to "Asset -2"). Asset -1 and Asset -2 were commissioned on 1.11.2011 and 1.1.2012 respectively, after a delay of 11 months and 13 months. The transmission tariff in Petition No. 109/TT/2012 was approved by the Commission by its order dated 1.8.2013. While approving the transmission tariff, the Commission disallowed 50% of Interest During Construction (IDC) and Incidental Expenditure During Construction (IEDC) for the period from April 2010 to November 2010 (i.e. 8 months) for both the assets and further disallowed 100% of IDC and IEDC for 3 months and 5 months from December 2010 onwards in case of Asset -1 and Asset -2 respectively. The relevant portion of the order is extracted as under: - -

(3.) AGGRIEVED by the said order, the petitioner filed an appeal, i.e. Appeal No. 257 of 2013 before the Appellate Tribunal for Electricity ("the Tribunal"). The Tribunal in its judgment dated 12.9.2014 partly allowed the appeal. The relevant extract of the Tribunal's Judgment is as follows: - -