Gridco Snaps Supply To Indian Metals

In a new twist to the ongoing row between Grid Corporation of Orissa (Gridco) and Indian Charge Chrome Ltd (ICCL), the former has discontinued power supply to ICCLs sister concern Indian Metals and Ferroalloys Ltd (IMFA).

Production at the Theruvali unit of IMFA, in Koraput district, has come to a halt following disruption in power supply. The unit, with a capacity to produce 70,000 tonnes of charge chrome and ferro silicon, was known as the bread earner for the group. Gridco has even cut supply to the employees colony of the company. The move comes only two days after Gridco arm twisted Paradeep Phosphates Ltd (PPL) into stopping power purchase from ICCL.

 

Gridco sources said the state utility company was forced to disconnect power supply to IMFA following payment default to the tune of Rs 25 crore over the last two years. However, IMFA, which was getting about 35 mw from the captive power plant of ICCL via the distribution network of Gridco through a wheeling arrangement, has disputed this claim.

IMFA sources pointed out that most of the default amount pertained to supply of back-up power by Gridco when the ICCL captive power plant was forced into isolation from the state grid following disturbances in the grid. Due to excessive pumping of power by the Nation Thermal Power Corporation (NTPC) and generating stations in West Bengal into the eastern grid during off-peak hours, the grid frequency in the state is often pushed beyond the safety level of 51.5 hz, necessitating such isolations for equipment safety.

Meanwhile, ICCL has slapped a counter claim that the Gridco should pay a compensation of Rs 63 crore for the loss of opportunity to export power during the isolated period. However, Gridco is said to have turned down the ICCL plea on the ground that no other generating station in the state has demanded compensations when in a similar situation.

Infact, Gridco earlier had served disconnection notices on IMFA in a bid to force the company into clearing its outstanding dues. But IMFA moved court in Puri and got a stay on the Gridco move. Gridco then appealed against the Puri court order in the Orissa High Court which on Thursday vacated the stay in a ex-parte hearing. Following this, Gridco discontinued supply to the Theruvali unit of the company.

Meanwhile, the IMFA/ICCL group yesterday suffered another legal setback when the Orissa High Court, on an appeal by the company to recall the stay vacation, yesterday ruled that the industrial house should first deposit Rs 5 crore before Gridco restarts power supply. However, on the ICCLs counter claim of Rs 63 crore due from Gridco, the court has put off further hearing on the matter till after the summer vacation.