Petition No. 227/MP/2012. Case: Ravikiran Power Projects Pvt. Limited Vs State Load Despatch Centre, Karnataka Power Transmission Corporation Ltd., Gulbarga Electricity Supply Co. Ltd. and Karnataka Renewable Energy Development Ltd.. Central Electricity Regulatory Commission

Case NumberPetition No. 227/MP/2012
CounselFor Appellant: Shri B.P. Patil, Senior Advocate, Shri Anirudh, Shri Venkata Krishna K. and Shri B.S. Prasad, Advocates for RPPPL and For Respondents: Shri Anand K. Ganesan, Advocate, SLDC, Karnataka and Shri G.S. Kannur, Advocate for KREDL
JudgesPramod Deo, Chairperson, V.S. Verma and M. Deena Dayalan, Members
IssueElectricity Act, 2003 - Sections 11, 86
Judgement DateMay 20, 2013
CourtCentral Electricity Regulatory Commission


  1. In this petition, the petitioner has made the following prayers, namely:

    (a) Set aside the order/communication dated 3/7/2012 in No. CEE/EE/AEE-3/SLDC/581-82 issued by SLDC, KPTCL

    (b) Direct SLDC issue concurrence/NoC/prior standing clearance to the petitioner pursuant to application dated 26.06.2012 in a time bound manner;

    (c) Direct the respondents/GESCOM to pay damages at the rate of Rs. 5.50 per kWh of power received from petitioner from the date of Termination of PPA i.e. 28/2/2012 till grant of open access.

    (d) Award cost of this petition;

    (e) Pass such other further orders as this Hon'ble Commission may deem appropriate to meet the ends of justice including awarding cost to the petitioner.

    The petitioner who has set up a 7.5 MW biomass-based power project (the Project) in Koppal District of the State of Karnataka, entered into a Power Purchase Agreement (PPA) dated 10.6.2002 with Karnataka Power Transmission Corporation Ltd., (the second respondent) for supply of 6 MW of power from the Project. The PPA was duly approved by Karnataka Electricity Regulatory Commission (the State Commission). Under the PPA, the tariff was fixed at ` 3.85/kWh, with an annual escalation at the rate of 5%.

  2. The petitioner has alleged that the second respondent issued a letter dated 5.7.2003 terminating the PPA and seeking to unilaterally fix tariff at ` 2.80/kWh with an annual escalation at the rate of 2%. The petitioner has further alleged that it was coerced to sign a supplemental agreement with the third respondent on 14.11.2006 on the terms contained in the letter dated 5.7.2003 ibid. The petitioner has already filed a Writ Petition (W.P. No. 13043/2011) before the High Court of Karnataka questioning the legal validity of the letter dated 5.7.2003 and the supplemental agreement dated 14.11.2006; the said Writ Petition is said to be presently pending. The petitioner has claimed that it started supplying power from July 2005 when generation started.

  3. On 31.8.2005, the PPA was assigned to the third respondent consequent to reorganisation of electricity sector in the State of Karnataka. The petitioner has submitted that the third respondent committed continuous breaches of its financial obligations under the PPA as also the supplemental agreement and failed to make payment of the amounts due despite repeated notices and opportunities. The petitioner by its letter dated 27.2.2012, delivered to the third respondent on 28.2.2012 issued notice under Article 9.3.2 of the PPA for terminating the PPA. The petitioner, however, informed the...

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