Petition No. 548/MP/2014. Case: Darbhanga-Motihari Transmission Company Limited and Ors. Vs Maithan Power Limited and Ors.. Central Electricity Regulatory Commission

Case NumberPetition No. 548/MP/2014
JudgesGireesh B. Pradhan, Chairperson, A.K. Singhal and A.S. Bakshi, Members
IssueElectricity Act, 2003 - Sections 14, 17(3)
Judgement DateMarch 18, 2015
CourtCentral Electricity Regulatory Commission

Order:

  1. The first petitioner herein, Darbhanga-Motihari Transmission Company Limited, has been granted transmission licence under Section 14 of the Electricity Act, 2003 (hereinafter referred to as "the Act") to transmit electricity as a transmission licensee and for that purpose to undertake the business of establishing the transmission system for 'Eastern Region System Strengthening Scheme-VI (hereinafter referred to as "Transmission System")' on Build, Own, Operate and Maintain? (BOOM) basis, the details of which are specified in the schedule attached to the licence issued vide order dated 30.5.2014. Darbhanga-Motihari Transmission Company Limited and IDBI Trusteeship Services Limited have filed a combined petition for creation of security in favour of IDBI Trusteeship Services Limited as Security Trustee for the benefit of the banks/financial institutions/non-banking financial companies led by IDBI Bank Limited, including its successors transferees, Novatees and assignees, as security for the financial assistance of an aggregate amount of ` 605 crore provided by IDBI Bank Ltd., India Infrastructure Finance Company Limited, PTC India Financial Services Limited and Union Bank of India (lenders) for part financing the project and performance bank guarantee facility of an amount of ` 22 crore from IDBI Bank Limited. The petitioners have made the following prayers:

    (a) Grant the approval to create security interest over the TSA, the project assets, clearances, approvals and the Transmission License in favour of Security Trustee, including recognition of the right to appoint Hon'ble Commission's approved nominee in the event of enforcement of security interest in the TSA and Transmission License;

    (b) Approve the Security Documents execution, for creation and/or perfection of aforesaid Security Interest annexed at Annexure IV hereto in favour of IDBI Trusteeship Services Limited, in its capacity as the Security Trustee, for the benefit of the Lenders;

    (c) Pass such other order/orders, as may be deemed fit and proper in the facts and circumstances of the case;

  2. According to the first petitioner, in relation to financing of the project, financial assistance of ` 605 crore was sanctioned by IDBI Bank Ltd., India Infrastructure Finance Company Limited, PTC India Financial Services Limited and Union Bank of India on 13.6.2014, 19.8.2014, 15.10.2014 and 11.11.2014 respectively for part financing the project and performance bank guarantee...

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