Petition No. 26/2011. Case: Essar Power Transmission Co. Ltd. and Rural Electrification Corporation Limited Vs Essar Power MP Limited. Central Electricity Regulatory Commission
| Case Number | Petition No. 26/2011 |
| Judges | Pramod Deo, Chairperson, S. Jayaraman, V.S. Verma and M. Deena Dayalan, Members |
| Issue | Electricity Law |
| Judgement Date | April 27, 2011 |
| Court | Central Electricity Regulatory Commission |
Order:
1. The first Petitioner herein, Essar Power Transmission Company Ltd. has been granted transmission licence under Section 14 of the Electricity Act, 2003 (the Act), to transmit electricity as a transmission licensee and for that purpose to construct, maintain and operate the 400 kV transmission line and 400/220 kV sub-station for setting up of a dedicated transmission system between Mahan generating station and Hazira (hereinafter referred to as "the project"), the details of which are specified in the schedule attached to the licence issued on 8.4.2008. In the present application, the Petitioners have made following prayers to:
(a) Approve the creation of security in favour of Security Agent pursuant to Security Agent Agreement, by way of mortgage, hypothecation and pledge for the project by execution of Indenture of Mortgage, Deed of Hypothecation and Deed of pledge for the project; and
(b) Pass such other relief as Hon'ble Commission deems fit and appropriate under the circumstances of the case and in the interest of justice
2. According to the Petitioners, request has been made for long-term debt through consortium of financial institutions consisting of Power Finance Corporation Ltd (PFC) as the lead member with Rural Electrification Corporation (REC) as the other member. The lenders have agreed to make available financial assistance for an aggregate principal amount not exceeding?934.50 crore for the purpose of part financing the construction, development and implementation of the project and on the terms and conditions set out in the 'Common Loan Agreement' executed between Petitioner and lenders in addition to other documents, namely, 'Inter Creditor Agreement', 'Lenders Agent Agreement', 'Security Agent Agreement' 'undertaking by the Borrower' and 'Sponsor Support and Retention Undertaking Agreement, (hereinafter referred to as "Financing Agreements"). For this purpose, the first Petitioner and the lenders have appointed REC as Security Agent who has agreed to act as trustee for the lenders and hold the security to be created pursuant to the Financing Agreements in accordance with terms and conditions thereof for the benefit of the lenders based on Security Trustee Agreement dated 30.12.2010 entered into by the Petitioners lenders and security agent.
2. It has been stated that in accordance with the conditions of the Common Loan Agreement and Security Agent Agreement, first Petitioner has agreed that the facility shall be...
To continue reading
Request your trial