RATNAGIRI GAS AND POWER PRIVATE LIMITED RGPPL Vs. MAHARASHTRA STATE ELECTRICITY DISTRIBUTION COMPANY LTD
LAWS(ET)-2006-10-9
CENTRAL ELECTRICITY REGULATORY COMMISSION
Decided on October 25,2006

Appellant
VERSUS
Respondents

JUDGEMENT

- (1.) THE petitioner, Ratnagiri Gas and Power Pvt. Ltd made the present application for approval of variable cost @ 607 paise/kWh and capacity and incidental charges @ Rs.33.03 crore per month for sale of power from Ratnagiri Gas and Power Project (hereinafter 'the generating station') taken over from the Dabhol Power Company, during the period from October 2006 to March 2007 from Phase-I, Block - I. THE power is presently proposed to be sold to Maharashtra State Electricity Distribution Co. Ltd. (MSEDCL), the respondent. THE petitioner has placed on record a copy of Ministry of Power Certificate No. C-436/2005-IPC dated 14.3.2006 which certifies as under: (a) Certified that Ragnagiri (erstwhile Dabhol) Power Project being set up by M/s. Ratnagiri Gas and Power Private Ltd., is an inter-State thermal power plant of a capacity of 1000 MW or more. (b) Certified that (i) power purchasing States have constituted the Regulatory Commission with full power to fix tariffs; (ii) that the power purchasing States undertake, in principle, to privatize distribution in all cities, in these States, each of which has a population of more than one million within a period to be fixed by the Ministry of Power, and (iii) that the power purchasing States have agreed to provide recourse to that State's share of Central Plan allocations and other devolutions towards discharge of any outstanding payment in respect of purchase of power.
(2.) The petitioner has stated that a minimum of 5% of power generated at the generating station is proposed to be sold outside the State of Maharashtra. The variable cost of 607 paise/kWh was stated to be based on the cost of imported Naphtha and for this purpose the petitioner has considered heat rate of 2000 KCal/kWh and auxiliary power consumption @ 3.5%, with loading pattern at 70% of base load. The break-up of capacity and incidental charges of Rs. 33.03 crore/month was given as under: JUDGEMENT_216_TLET0_20060.htm
(3.) THE application was initially heard on 26.9.2006 when it was clarified on behalf of the petitioner that viability of the project was on LNG, the long-term sourcing of which was to be firmed up by Gas Authority of India Ltd. However, due to acute shortage of power in the State of Maharashtra, the respondent was interested to buy power on base load basis with naphtha as fuel during the period in question. It was stated on behalf of the petitioner that the proposal made in the present application should be considered as that for sale of infirm power. This was further confirmed through an affidavit filed on behalf of the petitioner. In terms of this proposal, any revenue other than recovery of fuel cost, earned by sale of power would reduce the capital cost for determination of final tariff.;


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