TATA POWER COMPANY LIMITED Vs. RELIANCE ENERGY LIMITED

JUDGEMENT

(1.) THIS petition is directed against the order dated 31 st May, 2004 passed by the Maharashtra Electricity Regulatory Commission (for short, 'merc'),

(2.) THE brief facts, which are necessary to dispose of the petition, are recapitulated as under :-The Tata Power Company Limited (for short, 'tpc') has entered into an agreement with Maharashtra State Electricity Board (MSEB) on 12th march, 1985, as a result of which, it has been providing standby facility to tpc. Since 1990, TPC is getting standby facility of 550 MVA (Mega Volt ampere) from MSEB.

(3.) RELIANCE Energy Limited (REL) also required standby facility of 275 MVA, and on the direction MSEB, it was agreed that TPC would provide standby facility of 275 MVA to REL out of 550 MVA received by TPC from MSEB. It was further agreed that REL would pay Rs. 3. 5 crores per month to TPC for providing 275 MVA standby facility to REL. It was agreed that TPC would pay mseb Rs. 24. 75 crores per month for the entire standby facility, i. e. 550 mva. The said amount was calculated on the basis of the tariff existed at that time and agreement to that effect was entered into between TPC and REL on 31st January, 1998; and inter-connection between the two systems was established on 14th February, 1998.