M .KARPAGA VINAYAGAM - (1.) Tamil Nadu Electricity Board (TNEB) is the Appellant herein. Central Electricity Regulatory Commission (Central Commission) is the first Respondent. Neyveli Lignite Corporation of India Ltd (NLC) is the Second Respondent. The Appellant and other Respondents are the beneficiaries.
(2.) THE NLC (R -2) is a Central Public Sector undertaking engaged in generation of power and it has three power Stations namely TPS -I, TPS -II and TPS -I Expansion. Aggrieved by the order passed by the Central Commission dated 31.8.2010 in favour of
(3.) NLC (R -2) allowing additional capitalization amounting to Rs.56.32 Lakhs towards the Additional Compressor and Air Dryer on the strength of the clause 9(2)(iii) of the Tariff Regulations, 2009, the Appellant has filed this present Appeal. The short facts are as under: (a) The Appellant, TNEB entered into a Bulk Power Purchase Agreement with the NLC (R -2) on 20.9.2001 and the Supplementary Agreement on 5.11.2002 by which the Appellant agreed to purchase power from the Thermal Power Station -I Expansion of the NLC (R -2) for a period of 25 years subject to the certain terms and conditions. (b) The Central Commission (R -1) which is vested with the powers to determine the tariff in respect of generation station owned and controlled by Government of India, issued general notice relating to the fixation of tariff on the purchase of energy and for the payment of transmission charges. (c) The Ministry of Coal, Government of India issued notification giving guidelines dated 27.8.2009 for the preparation of Mine Closure Plan indicating the estimated cost towards Mine Closure as Rs.6 lakhs per hectare for an opencast mine. (d) Subsequent to the issuance of the said notification, the NLC (R -2) filed a tariff petition before the Central Commission seeking for the fixation of generation tariff for the period from 1.4.2009 to 31.3.2014 based on the notification issued by Ministry of Coal. (e) The Central Commission after issuing notice and after hearing the parties including the Appellant passed the impugned order dated 31.8.2010 fixing the generation tariff and the transfer price of lignite for the period 2009 -14 and allowing the additional capitalization in favour of the NLC (R -2). Aggrieved by the same, the Appellant has filed this Appeal. 3. According to the Appellant, the Central Commission wrongly allowed additional capital expenditure claimed by NLC (R -2) towards Additional Air Compressor and Air Dryer amounting to Rs.56.32 lakhs citing clause 9 (2) (iii) even though clause 9(2) (iii) of Regulation 2009, providing for additional capital Ash Pond or Ash Handling System would not apply to the present case as it does not form part of the original scope of work. The Appellant has raised following two issues assailing the order impugned in this Appeal: (a) Additional Capitalization of Rs.42.13 lakhs towards the Air Compressor and Rs.14.19 lakhs towards the Air Dryer aggregating to Rs.56.32 lakhs was wrongly allowed. (b) Cost of Mine Closure has been wrongly allowed subject to the adjustment at the end of the tariff period. Even though the Appeal has been filed on these two issues, the Appellant is not pressing the second issue. As such, the Appellant confined itself with the First issue.;