MAIHAR CEMENT Vs. M P STATE ELECTRICITY BOARD

JUDGEMENT

(1.) THIS is an appeal by applicant Maihar Cement under Section 41 of the M. P. Vidyut Sudhar Adhiniyam, 2000 (hereinafter to be referred to as the 'adhiniyam') against the order by which the M. P. Electricity Regulatory Commission (hereinafter to be referred to as the 'commission') has declined to give consent to it to install additional 15 MW thermal captive power plant on its application under Section 21 of the Adhiniyam.

(2.) IT is not in dispute that the petitioner is a company registered under the Companies Act, 1956 and it is manufacturing cement at Maihar. It requires uninterrupted supply of electricity. It has been provided at HT connection at 132 KV with a contract demand of 23 MVA by the M. P. Electricity Board (hereinafter to be referred to as the 'board' ). The petitioner company has already installed "captive power plants" of 30. 3 MW after obtaining consent of the Board under Section 44 of the Electricity (Supply) Act, 1948 (hereinafter to be referred to as the 'act' ). By order dated 27-8-1996 the Board granted permission to the petitioner company for installation of additional 15 MW captive power plant. But it could not be installed by the petitioner company within the stipulated period of five years. The petitioner company submitted an application on 14-1-2002 under Section 21 of the Adhiniyam before the Commission for its consent to install 15 MW thermal captive power plant with a request to relax the condition of drawal of 50% of the total monthly requirement of electricity from the Board. That application has been rejected by the impugned order.

(3.) THE petitioner's case is that the installation of additional 15 MW captive thermal power plant in its cement factory has become necessary to run the factory efficiently and economically. It is alleged that the Board is not in a position to assure uninterrupted supply of power to the extent required at proper voltage and frequency as it is having power shortage. The petitioner company obtained the consent of the Board to install this captive power plant in the year 1996 but it could not establish the same due to some financial constraints. Now it can do so. According to the petitioner company the cost of electricity from such a plant works out to Rs. 2. 57 paise per unit. It would be much less than the average cost of supply from the HT connection provided by the Board which is Rs. 4. 71 per unit. By adoption of economical and efficient methods the production of cement would increase and that would bring more revenue to the State also in the form of various taxes. Keeping in view the present power scenario in the State the installation of this captive power plant is not going to adversely affect the operation of the power system or development of electricity industry. The installation of the captive power plant would increase the power supply and that would be in overall public interest. It is submitted that the Commission has illegally rejected the application of the petitioner under Section 21 of the Adhiniyam.