IN RE: KARAM CHAND THAPAR AND BROS LTD. AND ORS. Vs. STATE
CENTRAL ELECTRICITY REGULATORY COMMISSION
In Re: Karam Chand Thapar And Bros Ltd. And Ors.
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(1.) AS per the Regulations 7(n) and 14 of the Central Electricity Regulatory Commission (Procedure, Terms and Conditions for grant of trading licence and other related matters) Regulations, 2009 as amended from time to time (Trading Licence Regulations), the licensees are required to undertake trading in electricity and failure to undertake trading in electricity will render the licences liable for revocation. The Commission vide order dated 22.8.2014 had directed number of licensees including Karam Chand Thapar and Bros Ltd.(KCTBL), Green Fields Power Services (P) Ltd. (GFPSPL) and Gemac Engineering Services (P) Ltd.(GESPL) to explain the reasons for not undertaking trading in electricity.
(2.) THE matter was heard on. 30.9.2014. Vide Record of Proceedings for the hearing dated 30.9.2014, the respondents were directed to submit their business plans. However, KCTBL, GFSPCL and GESPL did not submit their business plan. Accordingly, in our order dated 5.1.2015, we had issued notices to the said respondents to file their responses as to why their licences should not be revoked for non -compliance of the Commission's direction and for failure to undertake trading in electricity. Relevant portion of the said order is extracted as under:
"26. It is noted that Karam Chand Thapar and Bors Ltd., Gemac Engineering Services (P) Ltd., DLF Energy Private Ltd. and Green Fields Power Services (P) Ltd. have neither filed any reply to the petition nor did they participate in the proceedings before the Commission in any other manner. In accordance with the Regulation 14 of the Trading Licence Regulations, where the licensee in the opinion of the Commission, makes willful and prolonged default in doing anything required of him by or under the Act or the Rules or the Regulations, the Commission may revoke the licence after serving a notice of not less than three months. We are of the view that these four respondents have not only failed to comply with our directions but have also failed to comply with the provisions of Trading Licence Regulations. In our view, the licensees are not entitled to hold the licences when they have failed to comply with the Commission's directions and failed to undertake trading of electricity in violation of the regulations. Accordingly, we direct the said four respondents to file their responses as to why their licences should not be revoked for non -compliance of the Commission's direction and for failure to undertake trading in electricity. This order shall also be treated as notice under Regulation 14 (2) of the Trading Licence Regulations and the licence of the licensees shall be revoked after expiry of the period of three months from the date of issue of this order after giving an opportunity of hearing to the licensees."
In response, no reply was filed by KCTBL, GFSPCL and GESPL. Since the KCTBL, GFSPCL and GESPL did not submit their responses to the notice issued under Regulation 14(c)(d) of the Trading Licence Regulations, these licensees were directed to appear before the Commission for an opportunity of hearing before taking decision on the proposal to revoke their licences.
Case of Karam Chand Thapar and Bros Ltd.
(3.) KARAM Chand Thapar and Bros Ltd. (KCTBL) in its reply dated 9.6.2015 has submitted that the Commission's order dated 5.1.2015 regarding show cause notice was misplaced in its office and was never brought to the notice of the management by concerned officials. As a result, the licensee could not file its reply to the notice along with the business plan and could not appear before the Commission during the hearing. KCTBL has submitted that due to drastic fall in availability of KG basin gas, imposition of cross subsidy surcharge, low overall demand, non -availability of power evacuation facility and stiff competition in the market, it was not able to undertake trading in electricity. KCTBL has submitted that with the manufacturing activities in the country reviving and prices of petroleum products coming down, the market for short term sales and purchase of electricity is likely to improve. KCBTCL is now approaching with structured approach with long terms business vision on trading in electricity business. KCTBL has submitted that in view of the huge in -house demand, existing relationship with the utilities, its manpower competence and geographical presence, it would very soon undertake trading in electricity. KCTBL has submitted its business plan as under:
Business Plan Projections for the Electricity Trading
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