Petition No.4 of 2008
Date of Order : 05-08-08

This petition has been filed by M/S. Indian Acrylics Ltd. seeking issue of directions to the Punjab State Electricity Board (PSEB) to enter into a revised PPA with the petitioner incorporating the benefits of the New & Renewable Sources of Energy Policy-2006 (NRSE Policy-2006).

The petitioner has stated that petition No.14 of 2004 had been filed before the Commission for determining the terms and conditions in respect of export of power from their IPP to PSEB which was decided by the Commission by its order dated November 25, 2005. In pursuance of the said order the petitioner entered into a PPA with PSEB incorporating rates for purchase of power then applicable as per NRSE Policy 2001. The State Government issued a new NRSE Policy in 2006 wherein rates for purchase of power are higher than those available in the earlier Policy. The petitioner further contends that apart from change in the NRSE Policy, the cost of generation has also gone up over a period of time and has become uneconomical at the rates of NRSE Policy 2001. In the order dated December 13, 2007 the Commission has allowed the benefit of enhanced rates in NRSE Policy 2006 to developers who had entered into MOUs/Implementation Agreements but had not entered into PPAs as also to those who had entered into PPAs but no further step had been taken by them to implement their projects. The Commission, however, did not allow the benefit of new rates under NRSE Policy 2006 in cases where the projects had achieved COD before the commencement of NRSE policy 2006. It is also urged that though the petitioner’s project had achieved COD before the NRSE Policy 2006, the cost of generation has gone up but the rates stood frozen according to the PPA already signed. It is pointed out that the Commission has also observed in its order dated December 13, 2007 that individual developers would be free to approach the Commission for enhancement of rates as there could be different costs with regard to projects adopting different technologies/fuels. The petitioner has also filed Annexure P-3 bringing out the increase in the cost of raw material over the years and a calculation sheet (Annexure P-5) on the basis of which revised rates are sought to be claimed. On the above basis, the petitioner has prayed that the PSEB may be directed to enter into revised PPA with the petitioner in terms of order dated December 13, 2007, revised NRSE Policy 2006 and after incorporating revised rates based on data given in the Annexures. Notice was issued to the respondents. PSEB filed a reply stating therein that the petition may be dismissed in view of the order dated December 13, 2007 passed by the Commission. The petitioner filed a rejoinder in which submissions made in the petition were reiterated. PEDA in its reply has stated that it is entirely upto the Commission to determine whether any enhancement in tariffs is called for in view of the order dated December 13, 2007. Arguments were heard. The parties reiterated the pleas taken in their pleadings. In support of his contentions, the petitioner has again referred to the Commission’s observations in its order of December 13, 2007 that the developers would be free to approach the Commission for enhancement of rates. The Order dated December 13, 2007 was passed by the Commission in the context of NRSE Policy 2006 issued by the State Government. In this order the Commission allowed the benefit of applicable rates for purchase of power under NRSE Policy 2006 to those developers whose projects had not achieved COD or where PPAs had not been concluded. Admittedly, the petitioner’s project had achieved COD before the issue of NRSE Policy 2006 and a PPA had also been concluded. The Commission’s observations in the said order are applicable to projects falling under the NRSE Policy 2006 while the project of the petitioner is clearly outside the purview of the new policy. Accordingly no enhancement of rates is admissible to the petitioner in terms of order dated December 13, 2007. The petition has no force and is dismissed.

sd/-	sd/-	sd/-
Satpal Singh Pall	Baljit Bains	Jai Singh Gill
Member	Member	Chairman

Chandigarh
Date: 05-08-2008