POWER GRID CORPORATION OF INDIA LTD. Vs. CENTRAL ELECTRICITY REGULATORY COMMISSION AND ORS.

JUDGEMENT

(1.) THE instant Appeal under Section 111 of the Electricity Act, 2003, has been preferred by Power Grid Corporation of India Ltd. (in short, the 'Appellant'), against the impugned order, dated 27.1.2014, passed by the Central Electricity Regulatory Commission (in short, the 'Central Commission') in Petition No. 97 of 2011, whereby the learned Central Commission has determined the tariff for the Assets in Western Region, constructed under the Western Region System Strengthening Scheme -II (WRSSS -II), Set A for the tariff period 1.4.2009 to 31.3.2014.

(2.) THE Central Commission while dealing with the aspect of Interest During Construction (IDC) and Incidental Expenses During Construction (IEDC) has disallowed the claim of the Appellant amounting to Rs. 251.50 lakhs on an assumption that 12 to 14 weeks time as against 10 months claimed by the Appellant is a reasonable time for completion of the works after the forest clearance was granted. The matter in issue in the instant Appeal is disallowance of the interest during construction (IDC) and IEDC by the Central Commission amounting to Rs. 251.50 lakhs in respect of time over -run of six months out of 10 months claimed by the Power Grid Corporation of India Ltd. (PGCIL), the Appellant herein. The Central Commission, keeping these facts in view, has condoned/allowed delay of 4 months against the total delay of 10 months as claimed by the Appellant/Petitioner in commissioning of Asset -II.

(3.) THE only issue which arises for our consideration is whether the Central Commission is right in proceeding on the assumptions that after the forest clearance all the activities could have been completed by the Appellant within a period of 12 to 14 weeks and disallowing the delay of the remaining six months?