M/S. AARTI STEEL LTD. Vs. ORISSA STATE LOAD DESPATCH CENTRE, GRIDCO LIMITED, INDIAN ENERGY EXCHANGE AND NATIONAL LOAD DESPATCH CENTRE

JUDGEMENT

(1.) THE petition has been filed under clause (c) read with clause (f) of sub -section (1) of Section 79 of the Electricity Act and Regulation 26 of Central Electricity Regulatory Commission (Open Access in Inter -State Transmission) Regulations, 2008 (hereafter "the Open Access Regulations") with the following specific prayers:

(2.) THE petitioner entered into MoU dated 7.2.2009 with the State Govt. of Odisha for setting up a thermal power plant with total capacity of 500 MW in Cuttack District of the State. The MoU inter alia provides that depending upon whether coal blocks are allocated to the petitioner within or outside the State of Odisha the petitioner is required to sell 14% or 12% of its exportable generation output to the State Government or any agency nominated by the State Government at variable cost and the petitioner can sell the balance power to any person of its choice. Further, in accordance with the MoU, the petitioner can sell the power output earmarked for the State to any person of its choice, whether within the State or outside, in the event of the agency nominated by the State Government not fulfilling terms and conditions of the MoU. GRIDCO Ltd., the second respondent, (hereafter "GRIDCO"), the agency designated by the State Government entered into a Power Purchase Agreement (PPA) dated 24.10.2009 with the petitioner in accordance with the MoU signed between the State Government and the petitioner. It is stated that the PPA was limited to the State Government's mandatory share of 14% or 12%, as applicable.

(3.) THE petitioner has alleged that since recovery of dues for the power supplied to GRIDCO had been a subject matter of dispute, it explored the possibilities of selling power to other entities. The petitioner has stated that it signed a Member -Client Agreement dated 17.3.2011 with M/s. Instinct Infra and Power Ltd., an interstate trading licensee and member of the Indian Energy Exchange, the third respondent (hereafter "IEX"). M/s. Instinct Infra and Power Limited are said to have applied for inter -State open access for sale of power generated by the petitioner. However, vide its letter dated 31.3.2011 State Load Despatch Centre, Odisha (hereafter "SLDC") refused to give concurrence/No objection/prior standing clearance on the ground that the petitioner had committed to supply its entire generation to the State and therefore, there was no available surplus for sale outside the State. The petitioner has alleged that since it was not able to recover its cost of generation from GRIDCO it shut down the power plant on 21.6.2011.