Sc Ruling Boosts Iccl Bid For Sale Of Power
The Supreme Court has accorded the status of an authorised agent for distribution of power to the Indian Charge Chrome (ICCL) under Section 14 (1) of Orissa Electricity Reforms Act.
In another relief to the beleagured company, the apex court has also slashed the claims of Grid Corporation of Orissa (Gridco) on ICCL towards payment of outstanding energy bills from Rs 89 crore to Rs 39 crore and allowed the latter to pay it in eight instalments.
On the counterclaim of ICCL for recovery of Rs 100.40 crore from Gridco to make up for the loss suffered by the company due to frequent tripping of its captive power plant, the court has ruled that the matter be settled through arbitration of the Orissa Electricity Regulatory Comm-ission (OERC).
The matter being put up for arbitration by OERC follows the courts recognition of ICCL as an authorised agent for distribution of power in Orissa. This status is likely to act as a shot in the arm for ICCL which has been lobbying hard for permission to sell the surplus generation from its 108 mw captive power plant at Choudwar to third parties.
Back in 1994, the ICCL had been allowed by the then Orissa government to sell its surplus generation to third parties like Paradeep Phosphates, Paradeep Port Trust and the Choudwar-based paper mill of Ballarpur Industries and received the necessary no objection certificate from the Orissa State Electricity Board to this effect.
But following the implementation of the Orissa Electricity Reforms Act and coming into being of Gridco in 1996, the newly-formed Electricity Regulation Commission had questioned the legality of allowing ICCL for third party sale particularly when Gridco happened to be the sole licensee for distribution of power in the state. As per the provisions of Act, the ICCL required a fresh no objection certificate from Gridco to continue with the third party sale.
However, ICCL had petitioned before the commission seeking the status of a licensee/ authorised agent for distribution of power so as to be exempted from the hassle of getting no objection certificate from Gridco.
With the matter still pending before the commission, the apex courts ruling recognising ICCL as an authorised agent is likely to help the latters cause.