Petition No. 31/2010. Case: Cross Border Power Transmission Company Limited Vs PTC India Limited and Powergrid Corporation of India Limited. Central Electricity Regulatory Commission
| Case Number | Petition No. 31/2010 |
| Judges | Pramod Deo, Chairperson and V.S. Verma, Member |
| Issue | Electricity Law |
| Judgement Date | October 15, 2010 |
| Court | Central Electricity Regulatory Commission |
Order:
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The Applicant, Cross Border Power Transmission company Limited under Regulation 6(b) of the Central Electricity Regulatory Commission (Procedure, Terms and Conditions of Transmission Licence and other related matters) Regulations, 2009 (hereinafter "transmission licence regulations") has filed this petition for grant of transmission licence to undertake the business of establishing, commissioning, operating and maintaining of the transmission system comprising the following elements: (a) Transmission Lines:
Name Voltage Class(kV) Length(Km) Type(S/C or
D/C)
Muzaffarpur- 400 kV to be initially 90 kms D/C Twin
Sursand charged at 220 kV level moose
(b) Sub-station: 220 kV- 2 Nos of bays (Bay extension work at Muzaffarpur substation of Powergrid)
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The Applicant was incorporated on 19.12.2006 under the Companies Act, 1956 as Cross Border Power Transmission Company Private Limited which name was changed to Cross Border Power Transmission Company Limited on conversion to Public Limited Company on 29.1.2010. The Applicant company is a joint venture with the following equity participation:
(a) Powergrid Corporation of India (PGCIL) .....26%
(b) Satluj Jal Vidyut Nigam Limited (SJVNL) .....26%
(c) IL and FS Energy Development Company Ltd. .....48%
The Applicant vide its affidavit dated 8.6.2010 has placed on record a signed copy of the draft Share Holder's Agreement as per which out of the present equity capital of Rs. 5 lakh, PGCIL and SJVNL have contributed Rs. 1.30 lakh each towards their respective shares of 26%. The applicant has submitted that the Petitioner will submit the signed Share Holding Agreement after signing of Transmission Service Agreement with National Electricity Authority of Nepal.
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The main objects of the Applicant company include the following:
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To engage in the business of building, maintaining and operating transmission system between India and neighbouring countries like Nepal, Bhutan, Bangladesh, Myanmar, Sri Lanka and Pakistan for the purpose of export and import of electricity....
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To accumulate electrical power and to transmit, distribute and supply such power throughout the areas of India and neighbouring countries....
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To carry on the business of a transmission company in all its branches, and to construct, lay down, establish, fix and carry out all necessary power stations, cables, wires, line accumulators, lamps and works....
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The Applicant has submitted that Nepal which has large common border with India is facing a power deficit of around 150 MW and as a result, load shedding is being resorted to for eighteen hours in a day. Presently, there are few 132 kV, 33 kV and 11 kV interconnections between India through State grid of Bihar and in the neighbourhood of Nepal operating radially and are being used to import power from India to the tune of 70 MW operated under the aegis of Indo-Nepal Power Exchange Committee. Over the next five to seven years, the power deficit in Nepal is going to increase to 200-250 MW. As the existing interconnections are grossly inadequate, the Indo-Nepal Power Exchange Committee in its eighth meeting held on 7th and 8th June 2007 at Kathmandu had agreed to put in place a strong cross border transmission link with a view to facilitate trading of power between the two countries on long term basis. The Applicant has further submitted that Nepal has a very high hydropower potential and hydropower totaling approximately 23000 MW have been studied in varying details. Nepal Electricity Authority (NEA) has taken up /planned the development of small and medium size hydro projects ranging from 5 to 200 MW capacities aggregating to about 2000 MW for development in a time span of 5 to 7 years. These projects include the projects being developed by Indian companies such as 120 MW Likhu-IV and 50 MW Balephi Projects by Bhilwara Group, 402 MW Arun III HEP by SJVN Ltd. and 300 MW Karnali HEP by GMR Energy Limited. NEA in its letter dated 12.10.2008 has conveyed its interest to import 250 MW of round the clock power for five years from PTC after construction of the Dhalkebar-Muzaffarpur 220/400 kV Transmission line and subsequently to export 200 to 300 MW of power when NEA is in the position to sell power after completion of the hydropower projects undertaken by it.
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The Applicant has submitted that NEA of Nepal signed a Memorandum of Understanding with IL and FS on 5.1.2007 for implementation of cross border transmission line corridor through two JV companies- JVC India incorporated in India and JVC Nepal incorporated in Nepal who would be responsible for project development of the respective portions in their countries. Accordingly, Cross Border Power Transmission Company Limited (CBPTCL) has been incorporated in India with the shareholding by PGCIL, SJVN Ltd. and IL and FS. Similarly, Power Transmission Company of Nepal Limited (PTCN) has been incorporated in Nepal with a shareholding of IL and FS and NEA in the...
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