PUNJAB STATE ELECTRICITY REGULATORY COMMISSION

SCO.220-221, SECTOR 34-A, CHANDIGARH

Petition No. 13 of 2007
Date of hearing: June 29, 2007
Date of Order: 23.7.2007

In the matter of:

Petition for sanction of 6MW Biomass Fired Captive Power Plant to the Petitioner and to allow the transfer of 3 MW power from Unit-II to Unit-I of the petitioner company situated at village Saidpura, Tehsil Dera Bassi, District Mohali by using 11kV dedicated line.

AND
In the matter of:M/S Nector Lifesciences Limited, District Mohali.
Versus
Punjab State Electricity Board, The Mall Patiala.
Present:Shri Jai Singh Gill,Chairman
Smt. Baljit Bains, Member
Shri Satpal Singh Pall, Member
For the Petitioner:

Shri Sunder Lal
Shri Pankaj Gupta, Advocate
For the Board:Shri R.P.Bector, Director
ORDER

                    This petition has been filed with the prayer that the petitioner-company may be allowed to set up a 6MW Biomass Fired Captive Power Plant and to transfer 3 MW power from its Unit-II to Unit-I by using a 11KV dedicated line.

It is stated in the petition that the petitioner company has two units at village Saidpura, Tehsil Dera Bassi, District Mohali and the distance between them is 800 meters. It is further mentioned that the petitioner company has installed a 6 MW Biomass fired captive co-generation power plant (CPP) at Unit II and the petitioner company had requested the Punjab State Electricity Board (Board) to allow it to transfer 3 MW power from Unit II to Unit I by using 11 KV dedicated line. The request of the petitioner company was considered by the respondent-Board in its WTM meeting held on April 11, 2007 when it decided that the PSEB has no objection to the proposal subject to clearance by PSERC for 11 KV dedicated line.

The petition was admitted and a notice was issued to the respondent. The respondent Board filed a reply in which it is submitted that the Board has no objection for transfer of 3 MW power from Unit II to Unit I of the petitioner through the 11 KV dedicated line subject to the approval by the Commission. The Board, however, has not referred to any provision of law under which approval of the Commission is required.

Section 9 read with Section 7 of the Electricity Act, 2003 allows any person to construct, maintain or operate a captive generating plant without obtaining a license under the Act. Clause 2 of the Electricity (Removal of Difficulties) Fifth Order 2005 further provides that a generating company or a person setting up a captive generating plant shall not be required to obtain a license under the Act for establishing, operating or maintaining a dedicated transmission line subject to compliance of conditions specified in the Order.

In view of the above provisions of law, no approval of the Commission is required in this regard and the petition is disposed of accordingly. The Commission also observes that in view of the unambiguous legal position, there was no occasion for the Board to have passed a conditional order in the first place.
Sd/-Sd/-Sd/-
(Satpal Singh Pall)(Baljit Bains)(Jai Singh Gill)
MemberMemberChairman

Place: Chandigarh
Dated :July 23, 2007