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TN to wait longer for cheap power

M Ramesh Chennai | Updated on January 23, 2018 Published on May 22, 2015

Appellate tribunal rules against Jindal, KSK

The Appellate Tribunal for Electricity has ruled against two companies which wanted transmission lines allocated to them so that they could supply power to Tamil Nadu.

The companies, Jindal Power and KSK Mahanadi Power, signed agreements in 2013 with the Tamil Nadu government under which they would supply electricity to the State-owned utility for 15 years, for a tariff of ₹4.91 a kWhr. Both companies have power plants at Chattisgarh.

Jindal and KSK were to supply 400 MW and 500 MW respectively to Tamil Nadu’s electricity distribution company, Tangedco, from early 2014, and the plan depended upon the Power Grid Corporation of India getting the Sholapur-Raichur transmission line ready and allocating them the required transmission capacity.

The two companies applied to PGCIL for long term access of transmission capacity (more than 12 years but up to 25 years) in November 2013; a few other companies had in May that year applied for medium term capacity (more than three months, but up to three years).

Though PGCIL gave the applications of Jindal and KSK preference over medium term applicants, the Kerala State Electricity Board approached the Central Electricity Regulatory Commission. The CERC said that if there was enough transmission capacity, the long term applicant should get preference. But if the capacity was less than what the long term applicant demanded, the applicant should wait till such capacity was created. The available capacity should be given to the medium term applicant.

Because of this order, Jindal and KSK could not supply electricity to Tamil Nadu. They went to the Appellate Tribunal for Electricity (APTEL), challenging the CERC order.

But APTEL agreed with CERC and dismissed the appeals of Jindal and KSK Mahanadhi.

However, power sector sources point out that this is not a major setback for Tamil Nadu because the situation in the State is currently comfortable, partly because the demand is subdued. In any case, the two companies are expected to get their ‘corridor allocation’ in October this year.

Published on May 22, 2015
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