APERC rejects Amara Raja's power distribution license request

Company proposed to establish 132/33 KV Sub-station and switching station on its own

The Andhra Pradesh Electricity Regulatory Commission has rejected Amara Raja Infra's application for power distribution license in Chitoor district.

Amara Raja Infra is part of Rs 3,500 crore Amara Raja Batteries group company.

Amara Raja Infra had approached the electricity regulator of the State requesting a license for distributing power to various units in its proposed industrial park, expected to come up in Chitoor in about 500 acres.

The company, which gets power form the state-owned southern DISCOM (APSPDCL) proposed to establish 132/33 KV Sub-station and switching station on its own.

"While examining the application filed by the applicant for grant of distribution license, the commission framed three issues and carefully analysed rival contentions of the applicant and objectors in respect of each of such issues.

Accordingly, the request for grant of distribution licence is rejected and the application filed by the applicant on 18-11-2013 is dismissed," the APERC said in its order issued on May 25.

The regulator, while issuing orders observed that if the licence is granted, it may not generate competition but may merely result in creation of a 'monopoly'.

When contacted CEO of Amara Raja Infra C Narasimhulu Naidu said they are examining the issue.

"Similar kind of distribution licenses has been issued in other states. We are waiting for the new government here (Andhra Pradesh) to take over and give clarity on the policy issues," Naidu told PTI.

AP State Power Distribution Company Ltd, the power distribution entity of the government, voicing its opposition to the grant of license said as the applicant is a private entity proposes to cater to the needs of 'only' high consumers, more particularly to its own group companies, grant of distribution license would be detrimental to the business of the State owned power company.