TARIFF ORDER 
YEAR : 1999

MADHYA PRADESH ELECTRICITY REGULATORY COMMISSION BHOPAL

Petition No. 10/1999

M/S Jindal Strips Limited, New Delhi - Petitioner

V/s

The State of Madhya Pradesh, Energy Department Bhopal

&

The M.P. Electricity Board, Jabalpur - Respondents

O R D E R

This petition for the grant of transmission licence filed before the State Government has been forwarded to the Commission for disposal under Section 27 (D) of Indian Electricity Act. 1910 (for brevity referred to as the Electricity Act, hereinafter).

The petitioner thereafter filed a detailed petition before the Commission under Section 27(D) (1) and/or 27(D) (5) of the Electricity Act.

It is submitted by the petitioner company i.e. M/S Jindal Strips Limited that it has an integrated Steel Plant at Raigarh (M.P.) with a captive power Plant to meet its own energy requirement in manufacturing sponge iron and Steel. The petitioner, in view of the proposed expansion plan in future to increase the capacity of the existing Steel plant and for further setting up a rolling mill at Raigarh for the production of the structural Steel, needed the additional energy. It is submitted by the petitioner that to meet its own additional requirement of power under the captive power policy of the State and on completion of necessary legal and technical requirement, a 110 MW captive power plant for generating energy is going to be set up at village Tamnar, which is at a distance of about 40 KM from the Steel Plant.

By this petition in the above circumstances, the petitioner has prayed for the grant of transmission licence in order to transmit the so generated power from village Tamnar to its Steel Plant at Raigarh. Under the provisions of Section 27 (D) of the Electricity Act.

The M.P. Electricity Board, i.e. respondent No. 2 has been notified by the State Government as the State Transmission Utility under order No. 5764/F1-2/13/99 dated 27-9-99. The respondent Board, in para 7 of its reply dated 23-10-99, filed before this Commission has submitted that-

"7. However, as mentioned in our letter No. 05-01/GC/1115/MW/2483 Dated 21-06-99 addressed to the P.S. (Energy), the MPEB as State Transmission Utility has no abjection for issuing license to M/S JSPL for specific purpose of erecting a 220 KV line from vill. Tamnar to there factory at Raigarh on point to point basis. The line shall be operated and maintained by by M/S JSPL of their own for the purpose of transmission of electricity from vill. Tamnar to their factory at Raigarh."

The "No objection" granted by the Board satisfies substantially the requirements of the regulations framed by the Commission and submitted to the Government, in this regard. The Board in its later written submission has tried to take a somersualt from its earlier stand and has tried to agitate that the 'no objection' was granted under the misconception of law. But such a stand is now impermissible when the petitioner was permitted to install the captive power plant at Tamnar about 40 KM away from its Steel Plant. It could also be the reasonable expectation of the petitioner that there would be 'no objection' to the Board for laying the transmission line from Tamnar to Raigarh. The Board also in view of the above had granted the 'no objection' as stated above. The subsequent contention is, therefore, misconceived.

Any further delay in granting the transmission licence would neither be in the interest of the State nor of the public.

The State, Respondent No. 1, has also not opposed the grant of transmission licence to the petitioner for the above purpose i.e. laying 220 KV transmission line and transmitting the power from its captive power plant at village Tamnar to its steel plant at Raigarh.

In view of the facts and Circumstances, there is no imoediment in granting the licence to the petitioner. The petitioner is, therefore, granted the transmission licence for transmitting the power generated by its captive power plant at village Tamnar, to its Steel plant at Raigarh, by laying its own 220 KV transmission line, on the following conditions:-

1. That the licensee (petitioner) shall comply with the requirements as provided under Sections 12 to 19 of the Electricity Act and observe the provisions of the other related Acts, the Rules and Regulations of this Commission.

2. That the licensee shall construct, operate and maintain the transmission system, under the directions, control and supervision of the State Transmission Utility i.e. the M.P. Electricity Board. The transmission line shall be on point basis from 110 MW generating plant at Tamnar to the Steel Plant at Patrapally (Raigarh)

3. That the licensee (petitioner) shall satisfy the State Transmission Utility about the grant of permissions, clearances and approvals of its activity by all concerned authorities, including the Electrical Inspectorate and shall also intimate the Commission in this regard;

4. That the transmission of power shall be exclusively for the licensees (petitioner) use. The power shall not be supplied or sold to any else nor shall be utilised for any other purpose. The transmission line would be separate and shall not be connected in any manner to the transmission system of the State Transmission Utility.

5. That the licensee shall provisionally pay the annual fee of Rs. 1.50 lacs within one month from the date of commissioning the transmission line and shall continue to further pay the fee within one month on the completion of every year thereafter to this Commission; and

6. That the Commissioning of the transmission line shall be in the presence of the authorised officers of the State Transmission Utility and of the designated Electrical Inspector and the certificate of such officer shall be obtained and copy thereof shall be submitted to the Commission.

Bhopal Dated : 02-02-2000

(Justice Shacheendra Dwivedi )
Chairman.
 

(S. Iqbal Husain)
Member (P)
 

(Rabindra Tripathy)
Member(E)