GMR Energy gets Rs 100 cr from Tamil Nadu SEB

Appellate Tribunal for Electricity has directed state board to repay Rs 480 cr with interest pending further orders.

GMR Energy, a wholly-owned subsidiary of Bangalore-headquartered infrastructure company, GMR Infrastructure has received a payment of Rs 100 crore from Tamil Nadu Electricity Board in accordance with an interim order of the Appellate Tribunal for Electricity (APTEL).

Tamil Nadu state electricity board, which was earlier directed by the Tamil Nadu Electricity Regulatory Commission to repay around Rs 480 crore with interest to GMR, has challenged the state appellate authority’s verdict before the national body.

“There is a dispute between the company and the state electricity board with respect to power purchase agreement, land lease rentals among others, and we have appealed before the state appellate authority. The state authority had directed the board to repay Rs 480 crore in six installments. However, the verdict has been challenged before the national body and it has directed the board to start repayment pending final orders,” B V N Rao, chairman of GMR Energy said.

He, however, said this would not impact its relationship with the state board.

GMR Energy has a 15-year power purchase agreement with the Tamil Nadu State Electricity Board which ends in 2016 after which the cost structure will be renegotiated with the board. GMR has a 200 Mw power plant in Chennai.

“We do have a 15-year power purchase agreement with the state board which will be renegotiated after four and half years from now,” he said.

He also said that the board had the first right of refusal as far as the power purchase from the company was concerned.

As per the orders of the national appellate authority, the Tamil Nadu state electricity board have to make the first installment payment of Rs 100 crore and Rs 60 crore thereafter every month for the balance amount of Rs 480 crore.

“As per the orders, the state board will start repayment. If the final verdict doesn’t go in our favour, we have to return it back with interest,” Rao added.

GMR Infrastructure has posted a 33 per cent rise in its consolidated net profit in July-September period to Rs 71.1 crore over the corresponding period last year. Revenue of the company grew by 2 per cent to Rs 1,221.7 crore during this period.