(1.) The Petitioner challenges an Order passed by the Principal Secretary, Energy Department, dtd. 30/9/2010. The Petitioner claims to be a unit of Aditya Birla Nuvo Limited, engaged in the manufacture of carbon black. It had, at the relevant point in time, an installed capacity of 90,000 TPA. The manufacturing process resulted in the emission of combustible gases of high calorific value that are generated from the carbon black particles and fed into specially designed boilers for generation of steam. The said steam is further used for generation of power through turbo generator sets.
(2.) The Petitioner used three turbo generator sets of capacity of 2.5, 6 and 8 MW, each for generation of power. The Government of Tamil Nadu in terms of the power vested in it under Sec. 27 of the Indian Electricity Tax Act, 1910 (in short '1910 Act') issued G.O.Ms. No.180, dtd. 17/11/1997 permitting usage of turbo generators for electricity generation in parallel with the grid operated by the Tamil Nadu Electricity Board (Board/TNEB).
(3.) A Power Purchase Agreement (PPA), dtd. 22/3/1999 had been entered into with the Board for wheeling of the power generated from two turbo generators for business use of its sister concerns through the grid. The PPA also provided for TNEB to purchase the power that remained after supply to the sister concerns. The power generated by the Petitioner is supplied to the TNEB meter. In addition, there is a charge for using the grid, wheeling charges, that are to be adjusted at 15%, to be adjusted from the total power supplied by the Petitioner to the Board.