Gridco to appeal SC in NTPC tariff case

The Grid Corporation of Orissa (Gridco) has decided to move the Supreme Court against the order of Appellate Tribunal for Electricity (ATE) favouring National Thermal Power Corporation (NTPC) in a six-year old tariff case.

The ATE in its December 8 order said Gridco would have to pay NTPC Rs 1.70 per unit, against Rs 1.50 per unit paid earlier for the power received from Talcher Thermal Power Station (TTPS).

The recent order could cost debt-trapped Gridco about Rs 700 crore over a period of 20 years as it buys about 440 Mw power from TTPS, out of the state requirement of 2,750 Mw.

"Gridco has decided to move the Supreme Court against the ATE order," said B Mohapatra, its financial director.

The loan bulk power purchaser for Orissa had opposed the higher tariff demanded by NTPC saying the additional cost borne by TTPS in modernizing and maintaining the power plant cannot be included in power cost and had appealed before ATE in this regard in 2006.