PUNJAB STATE ELECTRICITY REGULATORY COMMISSION

SCO 220-221 SECTOR-34-A CHANDIGARH

 

 

Petition No. 17 of 2003

Date of hearing 3.3.2004

Date of order:7.4.2004

 

 

 

In the matter of :         Petition for the grant of permission for transfer of surplus power       generated at M/s Narindra paper Products Ltd., Taran Taran Road, Sangrana Sahib, Amritsar.

 

AND

IN THE MATTER OF:

 

                                    M/s. Narindra Paper Products limited, Amritsar.

 

 

Present:                       Sh. R.S.Mann, Chairman.

                                                Sh. L.S.Deol, Member.

 

 

For the petitioner:                   Sh. Narinder Singh, Director.

 

For the PSEB:                         Sh. H.C. Sood, CE/ Commercial,

Sh. B.D.Bansal, Director/ Sales,

Sh. V.K.Shanan, Dy. Director/ Sales.

 

 

ORDER:

 

This petition has been filed by M/s. Narindra Paper Products Limited for the grant of permission to transfer its surplus power to its Associates.   It is stated in the petition that the petitioner has installed a T.G. Set of 2.5 MW capacity and is generating power as co-generation from biomass as fuel.  It is stated that the petitioner is utilizing only 1.5 MW for its own consumption and that  the petitioner intends to transfer its surplus power  of 1000 KW (1MW) to its associates M/s.Charan Kanwal Card Board & Paper Mills Private Limited Sangrana Sahib and M/s. Narindra Paper Mills Limited Sangrana Sahib to the extent of 500 KW each.  It is further stated that permission has already been granted by the PSEB to install the T.G. Set and that Chief Electrical Inspector, Punjab, has also granted permission to operate T.G. set. It is further stated that the Board has already granted such permissions to M/s.Oswal Sugars Limited and M/s. Mukerian Papers Limited.

 

2.   PSEB has filed reply to the petition wherein it has been stated that no PSEB system is involved in the transfer of power from M/s. Narindra Paper Products Limited as all the three connections i.e. M/s. Narindra Paper Products Ltd. and its associates to whom surplus power is sought to be transferred, are existing within the same premises.  It is further stated that though the transmission system of PSEB for transfer of power to sister concerns is not involved yet the Regulations framed by the PSEB as Licensee are intact which enable the licensee not to consent installation of CPP at defaulting premises.  PSEB has prayed that the transfer of power may be allowed by protecting its interests for which petitioner may be directed to :

 

(i)             “Deposit one time ACD at existing rates on 1 MW power proposed to be transferred to sister concerns as per provisions made in clause 3.2.11 of  Regulation circulated vide C.C. No.26/2002 dated 10.6.2002.

(ii)           The petitioner whose own connection stands disconnected shall install two part tariff meter duly tested by PSEB and sealed by Sr. XEN/ Operation to monitor the quantum of transfer of power to regulate deposit of ACD.

(iii)          Once the charges regarding theft against sister concerns if finally resolved in favour of PSEB the permission for transfer of surplus power if granted to the petitioner may be ordered to be automatically lapsed subject to recovery of outstanding dues”.

 

3.   The parties have been heard. While considering the matter, the Commission has made a particular note of the provisions of Section 9 and Section 86 (1)(e) of the Electricity Act, 2003.  A reading of Section 9 brings out that it is the clear intention of the Act to freely allow and promote the construction, maintenance and operation of captive generating plants and dedicated transmission lines as also the transfer of  power from such a plant. Further, one of the functions assigned to the Commission under Section 86(1) (e) is to promote cogeneration and generation of electricity from renewable sources of energy by providing suitable measures for connectivity with the grid and sale of electricity to any person.  Admittedly, in this case, electricity is being produced through renewable sources of energy and surplus energy is to be transferred to third party through dedicated transmission lines.

 

4.   There is no question of deposit of ACD as the case does not involve any consumption by the petitioner of electricity supplied by the Board. As such, prayer of the Board at Sr. No. (i) and (ii) above, which pertain to deposit of ACD and monitoring quantum of transfer of power to regulate deposit of ACD, are not allowed. Regarding prayer at Sr. No. (iii) above, the petitioner has stated that in case any amount is found to be due against him by the appropriate authorities, the petitioner would deposit the same. He further agrees that in case he fails to deposit such an amount, the permission which may be granted by the Commission in this petition, may be cancelled. In view of the fact that transmission system of PSEB is not involved for the transfer of power to the Associates of the petitioner and that the power is to be transferred in the same premises, petition is allowed on the condition that if any amount is found due against the petitioner by the appropriate authority and the petitioner does not deposit the same, the permission to transfer power will be withdrawn.

 

 

                        Sd/-                                                                  Sd/-

(L.S.Deol)                                                       (R.S.Mann)

              Member                                                          Chairman

 

 

 

Place: Chandigarh.

Dated: 7.4.2004