TPDDL challenges start of commercial operation of CLP India's Jhajjar plant

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Delhi's private electricity distributor, Tata Power Delhi Distribution Ltd (TPDDL), has challenged the declaration of commercial operation of CLP India's 1,320 Megawatt (Mw) Jhajjar power plant in Central Electricity Regulatory Commission (CERC). The Tata Power arm has an agreement to source 10% (132 Mw) of the project's power.

Through the petition, TPDDL has sought a declaration that commercial operation (COD) date declared by Jhajjar Power Limited (JPL) was fraudulent because JPL does not have a fuel supply agreement and is, therefore, not in a position to generate power. TPDDL has also sought to reclaim around Rs 33 crore of transmission charges it has paid for transfer of power from the project to Delhi.

A CERC official confirmed the matter was listed for hearing today. The commission clubbed the petition with other related disputes over COD of projects, said another person close to the development. CLP India refused to comment on the issue. "This matteris sub-judice now and therefore we will not be able to comment," the company said in response to an e-mail query from Business Standard. The Indian arm of Hongkong-based CLP Group represents the second-largest Foreign Direct Investment in the Indian power sector.

The Jhajjar project was awarded by the Haryana government to CLP India through international competitive bidding in March 2008. JPL had declared commercial operation of both the units of its generating station (of660 Mw capacity each) in March and July 2012.