- (1.) THE petitioner seeks review/modification/re-consideration/clarification of the order dated 23.3.2007 in Petition No. 113/2006 (hereinafter referred to as "the original application").
(2.) Heard Shri R.K. Mehta, Advocate for the petitioner on admission. In the original application, the petitioner had prayed for adoption of tariff in respect of 2000 MW thermal power station proposed to be set up in Sidhi District of State of Madhya Pradesh (hereinafter referred to as "the generating station") in terms of Power Purchase Agreements (PPAs) dated 14.9.2006 and 28.9.2006 with the respondents, under Section 63 of the Electricity Act, 2003 (the Act). Earlier, the petitioner had made an application, taken on the file of the Commission as Petition No.95/2003, also under Section 63 of the Act, for adoption of tariff, which it had proposed to set up in Sonbhadra District, Uttar Pradesh (UP) based on the bids called by the State Government in February 1995. The application was disposed of by order dated 30.7.2004 wherein it was held by the Commission that the application under Section 63 of the Act was not maintainable. The grounds for rejection of the application are summarized hereunder: (a) PPA was not signed with the State Government of UP, who had invited the bids, as envisaged under the guidelines issued by the Central Government in Ministry of Power under its letter dated 18.1.1995 (hereinafter referred to as "the 1995 guidelines"). (b) Ministry of Power under its letter dated 12.8.1996 had advised the State Government to develop the project in accordance with the 1995 guidelines, which implied that these guidelines were not followed by the State Government while inviting bids in February 1995. (c) The tariff proposed in the application could not be said to have been the result of competitive bidding process. (d) When the proposal was initiated, the State Government of UP was the only beneficiary, but subsequently the other States were also added as the beneficiaries of the generating station. (e) There was change in the location of the generating station from Pratabpur (Uttar Pradesh), for which bids were invited to a place near Singrauli in Sonbhadra District of Uttar Pradesh. (f) There was change in certain terms and conditions, including the tariff proposed.
(3.) MINISTRY of Power on 19.1.2005 issued fresh guidelines (hereinafter referred to as "the 2005 guidelines") for inviting competitive bids for procurement of power by the distribution licensees, as contemplated under Section 63 of the Act. The original application was filed for adoption of tariff consequent to the 2005 guidelines. In the original application, the petitioner had proposed to establish the generating station in Sidhi District of Madhya Pradesh meaning thereby that the location was further changed. The petitioner signed PPAs with the MP Power Trading Company Limited and the distribution companies in the State of Rajasthan. After perusal of the documents placed on record by the petitioner, the Commission, by its order dated 23.3.2007 decided that the petitioner's prayer for adoption of tariff under Section 63 of the Act was not maintainable. The Commission found it difficult to accept the petitioner's contention that the tariff sought to be adopted by the petitioner was or could be derived from that arrived at through the process of bidding undertaken by the State Government of UP in 1995. However, in said order dated 23.3.2007, certain observations were made by the Commission as regards the tariff sought to be adopted by the petitioner. It was noted by the Commission that fixed charge rate projected by the petitioner was much higher than that for the thermal power generating stations being set up by NTPC and others, and that the projected variable charge rate was lower than that being charged for the nearby pit-head generating stations of NTPC and was, therefore, attractive. The Commission further noted that it was necessary to ensure that basic figures and assumptions for the tariff projected by the petitioner were in order.;