Case: In Re: East-North Interconnection Company Limited Vs. Central Electricity Regulatory Commission

JudgesPramod Deo, Chairperson and V.S. Verma, Member
IssueElectricity Law
Judgement DateAugust 04, 2010
CourtCentral Electricity Regulatory Commission

Order:

  1. The Applicant, East-North Interconnection Company Limited has filed this petition under Section 63 of the Electricity Act, 2003 (the Act)for adoption of transmission charges with respect to the transmission system comprising of Bongaigaon Siliguri 400 kV transmission line and Purnea-Biharsharif 400 kV transmission line. The tariff has been arrived at in accordance with the ''Tariff based Competitive-bidding Guidelines for Transmission service'' (hereinafter "the Guidelines") notified by the Central Government under Section 63 of the Act vide Resolution No. 11/5/2005-PG(i) dated 17.4.2006.

  2. The Applicant was incorporated on 1.2.2007 under the Companies Act, 1956 as a wholly owned subsidiary of Power Finance Corporation Ltd. with the objective to "plan, promote and develop an integrated and efficient power transmission system network in all its respects...." The applicant was also notified as a Bid Process Coordinator (BPC) on 26.6.2007 for the purpose of selection of bidder as Transmission Service Provider (TSP) to establish the transmission system for transmission scheme "for enabling import of NER/ER surplus power by NR" through tariff based competitive bidding process.

  3. The applicant in its capacity as BPC is stated to have initiated the bid process on 20.10.2008 and completed the process on 12.10.2009 as per the Guidelines. M/s Sterlite Technology Limited (STL) has been selected as the successful bidder having quoted the lowest levelised transmission charge. Accordingly, a Letter of Intent (LOI) was issued to STL by the BPC on 7.1.2010 which has been accepted by STL. Under the terms of Request for Proposal (RFP) and the Letter of Intent, the successful bidder is obligated to accomplish the following tasks:

    (a) Provide contract performance guarantee in favour of Long Term Transmission Customers (LTTC).

    (b) Execute Share Purchase Agreement

    (c) Acquire 100% share equity share holding of East-North Interconnection Company Ltd. from Power Finance Corporation along with its related assets and liabilities.

    (d) To execute RFP project document including transmission service agreement with LTTCs.

    (e) Make application to the Central Commission for adoption of transmission charges

    (f) To apply to the Commission for grant of transmission licence.

  4. The applicant has submitted that it has completed the above tasks and has approached the Commission by way of the present application for adoption of tariff in respect of the transmission system. The Applicant has also...

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