Case No. 38 of 2015. Case: Astha Power Corporation Pvt. Ltd. Vs Reliance Gas Transportation Infrastructure Ltd.. Competition Commision of India
| Case Number | Case No. 38 of 2015 |
| Counsel | For Appellant: A.N. Haksar, Sr. Advocate and Sanjeev Ralli, Advocate and For Respondents: Paras Kuhad, Sr. Advocate and R. Sasi Prabhu, Advocate |
| Judges | Ashok Chawla, Chairperson, S.L. Bunker, Sudhir Mital, Augustine Peter, U.C. Nahta, M.S. Sahoo, Members and G.P. Mittal, J. (Member) |
| Issue | Competition Act, 2002 - Sections 19(1)(a), 26(2), 4 |
| Judgement Date | November 19, 2015 |
| Court | Competition Commision of India |
Order:
Order under Section 26(2) of the Competition Act, 2002
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The information was filed under section 19(1)(a) of the Competition Act, 2002 (hereinafter referred to as the 'Act') by Astha Power Corporation Private Limited (hereinafter referred to as the 'Informant') against Reliance Gas Transportation Infrastructure Limited (hereinafter referred to as the 'Opposite Party'/'OP') alleging, inter alia, contravention of the provisions of section 4 of the Act.
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Facts of the case may be briefly noted:
"2.1 As per the information, it is stated that the Informant has spent about Rs. 107.50 crores as on 31st March, 2015 for installing a natural gas based power plant at Medak District in the State of Telangana with the intention of supplying power to Telangana State Distribution Company Limited (TSDISCOMS). It is stated in the information that all major equipment's needed for the first two units have already been erected.
2.2 It is further stated that the said power plant is located at about 14 KMS away from the Main Line Valve-13 ('MLV-13') on the East West Pipeline (EWPL) owned by OP, passing through the District of Medak in the State of Telangana.
2.3 It is also stated that in 2008, the Hon'ble Supreme Court vide its order dated 16thMay, 2008 in Civil Appeals 8094 of 2002, 8101, 8102, 8095, 8096 and 8093 of 2002, directed Andhra Pradesh Electricity Regulatory Commission ('APERC') to reconsider the applications of mini power plants including the Informant. Resultantly, APERC vide its order dated 15th April, 2010 directed the erstwhile Government of Andhra Pradesh ('GoAP') to recommend to the Ministry of Petroleum & Natural Gas, Government of India ('GoI') for allocation of natural gas to the Informant. Subsequently GoAP vide letter dated 4th June, 2010 had recommended to GoI for allocating natural gas from Reliance KG basin to the power plant of the Informant. Thereafter, a team from Central Electricity Authority ('CEA') had visited the Informant's power plant to verify and submit a report on the Informant's preparedness to receive gas for its power plant and had also scrutinized the possibility of its completion during the 11th plan period itself. Meanwhile, the matter could not proceed any further as the GoI decided to put on hold any further allocation of natural gas for the power projects, hence, the project could not materialize at that point of time.
2.4 The Informant has stated that as part of its efforts to secure natural gas for its power plant in line with the recommendations made by the Government of Andhra Pradesh vide its letter dated 4thJune, 2010 it had signed a Gas Transportation Agreement ('GTA') on take-or-pay basis with Gas Authority India Limited ('GAIL') dated 24th November, 2011. However, the Informant at that time did not have a Fuel Supply Agreement in place...
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