Decided on January 12,2015



- (1.) M/s ISMT Ltd. (ISMT), Lunkad Towers, Viman Nagar, Pune has filed a Petition on 6 August, 2014 seeking clarification of Order dated 20 June, 2014 in Case No. 46 of 2013 with regard to banking.
(2.) ISMT's prayers are as follows: a) " Clarify that the Order dated 20.06.2014 in Case No. 46 of 2013 in the matter of denial of the facility of banking shall have a prospective or retrospective applicability in light of above; b) Award cost of these proceedings against the Respondent and in favour of the Petitioner;..."
(3.) In its Petition and subsequent submission dated 29 October, 2014, ISMT has stated as follows: (1) In its Order dated 20 June, 2014 in Case No. 46 of 2013 (on a Petition of ISMT), the Commission had decided on the banking facilities admissible to fossil fuel based Captive Power Plants (CPPs) such as that of ISMT, which is engaged in steel manufacture which requires a varying quantum of electricity supply. (2) ISMT had set up a CPP to cater to its steel plants at three locations elsewhere in Maharashtra based on the Commission's Orders dated 8 September, 2004 (Case Nos. 55 and 56 of 2003) and 20 May, 2008 (Case No. 53 of 2007) which allowed the facility of banking. Therefore, till the Order dated 20 June, 2014 in Case No. 46 of 2013, ISMT could avail of banking facilities, and MSEDCL could not vary this dispensation without the Commission's sanction. Hence, the Order in Case No. 46 of 2013 needs to be given effect to only prospectively and retrospectively with regard to banking. ISMT seeks that this be clarified. (3) Moreover, a) The banking facility has been provided by the Maharashtra State Electricity Distribution Co. Ltd. (MSEDCL) to various other companies having fossil fuel based CPPs, including Sunflag Iron and Steel Company Ltd. (SISCL), Finolex Industries Ltd., Lloyds Steel industries Ltd, etc. b) The banking facility for SISCL is subsisting, and has been agreed to be provided till 31 December, 2014. c) ISMT had entered into an Energy Banking Agreement (EBA) with MSEDCL on 7 May, 2010 with MSEDCL. Thereafter, banking has been provided by MSEDCL to similarly placed industries. d) By virtue of banking facilities having been extended to other CPPs by MSEDCL, the denial of banking to ISMT, if at all, should only be imposed after 31 March, 2014. ;

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