U P POWER CORPORATION LTD Vs. MINISTRY OF POWER GOVERNMENT OF INDIA AND UTTARANCHAL POWER CORPORATION LTD
LAWS(ET)-2006-5-1
CENTRAL ELECTRICITY REGULATORY COMMISSION
Decided on May 09,2006

Appellant
VERSUS
Respondents

JUDGEMENT

- (1.) IN this petition, the petitioner has prayed the Commission to advise the Central Government in Ministry of Power to apply the formula/methodology dated 11.5.2004 evolved and applied by that Government in case of States of Chhattisgarh and Madhya Pradesh. A further prayer is made to adjust the UI gain made by Uttaranchal Power Corporation Ltd against the UI charges paid or payable by the petitioner.
(2.) Allocation of power from the central generating stations to various States is made by the Central Government. Accordingly, allocation of power from the central generating stations to the unified State of Uttar Pradesh was roughly of the order of 3000 MW. The generation in undivided UP was about 4000 MW, which included about 1500 MW from hydro generating stations located within the State. After creation of State of Uttaranchal in November 2000 in pursuance of the Uttar Pradesh Re-organisation Act, 2000, the Central Government by its order dated 5.11.2001 ordered division of assets between the power sector utilities in the States of Uttar Pradesh and Uttranchal. The petitioner has averred that the Central Government ordered transfer of about 1000 MW hydro generation capacity to the State of Uttaranchal, without considering relative requirement of power in the States of Uttar Pradesh and Uttaranchal and also allocated about 300 MW (roughly 10% of the share of undivided UP) to the State of Uttaranchal. At that point of time, total power requirement of the State of Uttaranchal was about 500 to 600 MW. It is alleged, due to inequitable allocation, its availability became 1300 MW. The power availability of the State of Uttaranchal is about 25% of availability to the State of Uttar Pradesh whereas population of Uttaranchal is just 10% of the total population of undivided Uttar Pradesh. In accordance with order dated 5.11.2001 ibid, the State of Uttar Pradesh will have first right to purchase surplus power of the State of Uttaranchal, on mutually agreed price failing which at the price determined by CEA. According to the petitioner, during the last 4-5 years, the State of Uttaranchal has sold its surplus power to other states either through bilateral contracts or through UI mechanism and has earned huge profits therefrom. The State Government of Uttar Pradesh has reportedly been writing to the Central Government about the alleged anomaly in allocation of power and also non-adherence of the direction of the Central Govt. by Uttaranchal regarding sale of surplus of power to the State of Uttar Pradesh, but has not drawn any positive response.
(3.) THE petitioner has averred that the erstwhile State of Madhya Pradesh was also re-organized in the year 2000, and the State of Chhattisgarh was carved out. Consequent to re-organization of the erstwhile State of Madhya Pradesh, a number of power stations were transferred to the State of Chhattisgarh thereby making the State of Madhya Pradesh a power deficient State. THE Central Government in Ministry considering the power shortages faced by the State of Madhya Pradesh evolved a methodology to arrive at the liability of the States of Madhya Pradesh and Chhattisgarh to pay UI charges, vide its letter dated 11.5.2004. THE State Government of Uttar Pradesh had made request to Ministry of Power for application of the methodology and principles evolved by letter dated 11.5.2004 in case of UI payment by the States of Uttaranchal and Uttar Pradesh. According to the petitioner, no decision has been taken by the Central Government on the request made by the State Government of Uttar Pradesh.;


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