Petition No 10 35 of 201 5

BEFORE

THE UTTAR PRADESH ELECTRICITY REGULATORY COMMISSION

LUCKNOW

Date of Order: 07 .01.201 6

PRESENT:

1.

2.

Sri S.K. Agarwal, Member

IN THE MATTER OF: Approval of amended draft PPA for Bagasse based power plant

of M/s Rauzagaon Chini Mi l ls (a unit of Balrampur Chini Mills

Ltd.).

Chief Engineer (PPA), UPPCL 14th Floor, Shakti Bhawan Extn., Lucknow

. ---------------Petitioner

M/s Rauzagaon Chini Mills, (A unit of Balrampur Chini Mills Ltd,.),

234/3A, A.J.C. Bose, Kolkata -700020 --------------- Respondent

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The following were present:

1. Sri S.K. Sinha, SE, (PPA)

2. Sri V.K. Asthana, SE (PPA)

3. Sri Raje ev Srivastava, Advocate, UPPCL 4. Sri Anil Gupta , CGM, Rauzagaon Chini Mills

5. Sri Pankaj Chaturvedi, Liaison Officer, Rauzagaon Chini Mills

Order

(Date of Hearing 22.12.2015)

1. The petition is filed by UPPCL for approval of Amended draft PPA that provides fo r

termination of evacuation line from M/s Rauzagaon Chini Mills , Rauzagaon at

Ramsanehi Ghat sub-station instead of Chandauli sub -station as envisaged in

clause 8.1 of PPA dated 06.02.2007 . All other provisions of the PPA are constant . clause 8.1 of PPA dated 06.02.2007 . All other provisions of the PPA are constant .

PRELUDE :

a. M/s Rauzag aon Chini Mills has PPA with UPPCL dated 06.02.2007 for

supply of 16 MW power during season and 23 MW power during off -season

from its co -gen plant at Rauzagaon in Distt. Barabanki . The plant is

operational since 01.10.2007.

b. As per PPA, 132KV power evacua tion line has to be interfaced by STU with

The power was evacuated at

Chandauli till 2 2.1.2009. As per clause 8.4 of PPA the petitioner has to pay

AMC @ of 1.5% of the cost of transmission evacuat ion system with Annu al

escalation of 5% to UPP TCL towards maintenance of 132 KV lines.

c. In 2009, UPPTCL decided to terminate above line at newly constructed 132

KV S/s at Ramsanehi Ghat instead of Chandauli S/s resulting in reduction in

length of transmission line from plant t o interface S/s from 56.5 Km to 15.5

km.

d. M/s Rauzagaon approached UPPCL to reduce their AMC for transmission line

owing to reduction in length of transmission line. But UPPCL refused to

entertain their demand citing provisions of original PPA.

e. Subsquently, M/s Rauzagaon approached the Commission. The Commission

in its order dated 13.07.2014 in the petition no. 1007/2015 observed:

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in its order dated 13.07.2014 in the petition no. 1007/2015 observed:

The claim of the petitioner for being charged reduced AMC charges w.e.f. 22.1.2009 is misconceived and erroneous in law for the reason that PPA dated 06.02.2007 is a binding legal document between UPPCL and the petitioner. Without effecting amendments in the relevant articles of the PPA there may be no reduction in the AMC charges on account of shortened transmission line. The red uction in AMC charges will be w.e.f. the date

Commission. No retrospective effect, it is submitted, can be given to prospective change in PPA for reduction in AMC charges. The petitioner should have approached UPERC to grant permission to the parties to carry out necessary amendments in article 8.1 of the PPA dated 0 6. 02. 2007. The Commission directs the parties to make necessary amendments in the PPA dated 0 6. 0 2.2007 within one month and submit t o the Commission within next one month for approval .

2. UPPCL, the petitioner, has submitted that it has received confirmation from

Executive Engineer Transmission Division -III Gomtinagar, Lucknow that the LILO of

concerned transmission line was made operat ional at Ramsanaehi Ghat S/s on

22.01.2009 . Further, it is also submitted that Director Operation UPPTCL has

confirmed that UPPTCL has executed connectivity agreement on 17.03.2015 and

has formalized connectivity at Ramsanehi Ghat S/s w.e.f. 22.01.2009.

3. Considering above, the Commission approves amended draft PPA providing for

change in clause 8.1 of PPA dated 06.02.2007 w.e.f. execution of revised

connectivity agreement and thus provides for termination of evacuation line from

M/s Rauzagaon Chini Mills , Rauzagaon at Ramsanehi Ghat sub-station instead of M/s Rauzagaon Chini Mills , Rauzagaon at Ramsanehi Ghat sub-station instead of

Chandauli sub-station . All other provisions of the PPA shall remain in force.

4. The petition is disposed of.

(S.K. Agarwal ) ( Indu Bhushan Pandey ) (Desh Deepak Verma)

Member Member Chairman

Place: Lucknow

Dated: 07.01.2016

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