Modifying its interim order, the Madras High Court today directed the state-owned Tamil Nadu Generation and Distribution Corporation (TANGEDCO) to enter into a power purchase agreement up to an outer limit of 1500 MW for 2015-16.
Justice T.S. Sivagnanam was hearing petitions filed by one Rasi Green Earth Energy Private Limited, Bangalore, and another firm.
When the matter came up, Advocate-General A L Somayaji submitted that TANGEDCO has taken a decision to fix a ceiling of 1,500 MW as the outer limit for entering into PPA for 2015-16 and sought a direction to modify the interim order.
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Senior counsel Wilson and another advocate Rahul Balaji, appearing for the petitioners, also agreed to this.
After recording the submission of Somayaji, the judge said "the interim order granted in all these writ petitions stands modified thereby permitting the respondent/TANGEDCO to enter into the PPA as per the procedure contemplated up to the outer limit of 1500 MW, as agreed to by them."
Earlier, the court had in an interim order prohibited the TANGEDCO from entering into any PPA.
Originally, Rasi Green Earth Energy Private Limited and another firm had moved the court for a direction to TANGEDCO to issue 'Noted for Record' letter pursuant to their requests and consequently execute a PPA for purchase of power from them.
After hearing arguments of senior advocate P Wilson, the judge had granted the interim injunction last year.
The judge, who modified the interim order restraining TANGEDCO from entering into any PPA, said "this, in my view, would not be in the interest of both, the power generators as well as TANGEDCO, and ultimately in public interest, in the light of the stand taken by TANGEDCO that it will not enter into PPA up to the outer limit 1500 MW, it would be appropriate to modify the earlier order granted by this court."
"Accordingly, the interim order granted in all these petitions stand modified thereby permitting the TANGEDCO to enter into the PPA."
However, the judge said other issues with regarding to the "seniority of the petitioners, readiness of their units, the parameters they have to fulfill are to be decided later."
The judge said all the actions done pursuant to the present interim order shall be subject to the ultimate orders passed on writ petitions and posted the matter for further hearing to January 28.
