Petition No. 10 of 2006

In the matter of:

Petition for Approval of PPA to be entered between M/S Triveni Engineering and Industries Ltd., New Delhi (now at NOIDA) and Punjab State Electricity Board.
In the matter of:
Punjab State Electricity Board, The Mall, Patiala
M/S Triveni Engineering and Industries Ltd., Noida.

Shri Jai Singh Gill, Chairman
Smt. Baljit Bains, Member
Shri Satpal Singh Pall, Member


This petition has been filed by PSEB for approval of Power Purchase Agreement to be signed by the PSEB with M/S Triveni Engineering and Industries Ltd., New Delhi (TEIL).

The brief history of the case is that TEIL filed Petitions No.6 to 13 of 2002 in respect of signing of PPAs for 8 projects between TEIL and PSEB. The Commission in its Order dated April 8, 2003 decided as under:-

“The Commission accordingly decides that PPAs in all cases be approved as per the directions of the Government dated October 28, 2002 as amended vide their reference dated February 18, 2003 except that the clause pertaining to 5% losses be amended to state that each year only assessed transmission losses be allowed to the PSEB subject to adjustment based on actuals. PEDA & PSEB may also ensure that during the period PPAs are valid, the private parties will produce power using only non-conventional sources for which the projects have been approved. Also in order to protect the interests of the PSEB and consumers in general, PEDA and State Govt. may take suitable steps to ensure that the developers continue to supply power at prescribed rates during the entire period of contract and NRSE policy is implemented. The PSEB will also ensure that there is uniformity in respect of all clauses of PPA for all parties falling under same categories under NRSE policy of the Government.”

In pursuance of Order dated April 8, 2003 referred to above, PSEB has filed this petition on May 11, 2006 for approval of the PPA. TEIL submitted a reply to the petition in which amendment of some of the clauses has been sought. The Board in its rejoinder has, however, reiterated that the PPA as filed should be approved. During the pendency of this petition, the State Govt. issued the new NRSE Policy 2006 which interalia provides higher tariff for power from such sources. In the light of this development, TEIL filed a miscellaneous application on March 6, 2007 seeking that approval of the PPA may now be granted at enhanced rates as provided in the NRSE Policy 2006. Comments of PSEB and PEDA were sought on this application which have been received.

The Commission observes that PSEB filed this petition for approval of a PPA based on an earlier order of the Commission of April 8, 2003. Besides the fact that PSEB has taken almost 3 years to do so, it is evident that the basis on which the earlier order of the Commission was passed no longer exists. The plea of TEIL in its miscellaneous application that the PPA should now be approved after incorporating tariff rates as per NRSE Policy 2006 also can not be accepted as this would amount to a substantive revision of the petition itself which can only be considered at the instance of the petitioner. Moreover, it is evident from the comments of PSEB and PEDA that the concerned parties need to take a fresh look at the PPA keeping in mind the new NRSE Policy, before the same can be considered by the Commission. In the light of above discussion, it is clear that the miscellaneous application filed by TEIL who is not a petitioner is not maintainable while the instant petition has itself become infructuous in view of the new NRSE Policy and is therefore dismissed as such.

Sd/- Sd/- Sd/-
(Satpal Singh Pall) (Baljit Bains) (Jai Singh Gill)
Member Member Chairman

Dated: June 1, 2007