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MSEB
to review DPC rebate payment by month-end
Sanjay Jog
Mumbai, May 15: THE Maharashtra State Electricity Board (MSEB)
will review the payment of rebate by the Dabhol Power Company (DPC)
for misdeclaration and default on the availability of power by the
end of this month.
| Three panel members not to attend
proceedings |
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Mumbai, May 15: THE Maharashtra government
on Tuesday received a major jolt as Tata Energy Research Institute
director RK Pachauri and former director of Indira Gandhi
Development Research Institute Dr Kirit Parikh have expressed
their inability to participate at the proceedings of the Madhav
Godbole renegotiation committee in view of their prior engagements.
Another member, former union power secretary EAS Sarma, has
also conveyed his inability to regularly attend these meetings
and would “try to be present as per my convinience.” State
government sources, while confirming the above, said despite
these developments the Godbole committee would hold renegotiations
with the Dabhol Power Company in a serious bid to reduce power
tariff and assess the possibilities of sale of Dabhol power
to power-deficit states. According to Dr Godbole Dr Parekh
and Mr Pachauri, who were also the members of the Madhav Godbole
energy review committee which reviewed the Dabhol project
power purchase agreement, have said from the beginning that
they would not be able to attend any meetings as they are
tied up with other work. These members along with another
member, Housing Development Finance Corporation chairman Deepak
Parekh, were conspicuous by their absence at the maiden meeting
held on May 5 and the second meeting with the DPC team on
May 11. The next meeting is scheduled for May 23.
-- Our Corporate Bureau
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The MSEB, which has already slapped a rebate of Rs 401 crore for
misdeclaration and default on the availability of power on January
28 by DPC, is likely to charge a rebate of another Rs 400 crore
after the proposed review.
MSEB’s move deserves importance as computation of rebate would be
done in accordance with clause 10.2 of the Power Purchase Agreement
(PPA) and the amount would be duly adjusted in the month of January,
May and September, MSEB sources told The Financial Express.
Ironically, DPC has already disputed the payment of Rs 401 crore
and conveyed its disappointment to the MSEB its “repeated attempts
to reach a situation that would allow to claim rebates for alleged
misdeclarations of the availability of the power station.”
Simultaneously, the MSEB, in no uncertain terms has told the DPC
that it would have to provide the Dabhol plant capacity in accordance
with the operating characteristics.
MSEB in a recent communication has said that the DPC would declare
the power availability correctly and perform as per provisions of
power purchase agreement (PPA). “MSEB and DPC are bound by PPA terms
and the despatch procedure specified in PPA. MSEB’s despatch instruction
will be always based on declared availability of DPC and also as
per the operating characteristics specified in PPA,” it added.
Curiously, DPC chief financial officer Mohan Gurunath had expressed
concerns over the nature of MSEB’s despatch instructions over the
last three months and in particular MSEB’s refusal to comply with
the PPA provisions that prohibit despatch instructions inconsistent
with DPC’s availabilitty declarations. The MSEB, however, has denied
that it has violated the procedure of despatch instructions stipulated
in the PPA claiming its actions in giving the despatch instructions
are strictly as per PPA provisions.
The MSEB has made it clear that it has been repeatedly attempting
to claim rebates for misdeclaration on the grounds that the board
continues to pay capacity charges and starting charges as per the
PPA.
“The PPA also specifies the time to achieve full load and we only
expect DPC to comply with the same. As certain clauses of the PPA
become applicable by which the MSEB is entitled to a rebate, the
same is claimed by the MSEB as per the PPA,” it said.
The MSEB said that despatch instructions are not contradictory to
the PPA and there are no procedures previously agreed or followed
in respect of declaration of availability and delivering of despatch
instructions during the start-up. “Despatch instructions are revised
for only those hours for which there was no instruction given earlier.
In the past, DPC has been able to achieve the instructed capacity
at the specified hour,” it added.
According to the MSEB, the actual generation before the specific
hours were to be accepted as instructed despatch of the MSEB, since
“there was no specific requirement of the MSEB during those hours.”
This practice was followed in the past and if required, the same
would be continued by the MSEB which is a procedure justifiable.Furthermore,
the MSEB said this does not give right to DPC “to violate PPA terms
as well as depart from operating characteristics agreed in the PPA.
One of such operating characteristics is to achieve full load within
three hours of starting from cold. The MSEB has been asking DPC
to perform as per the operating characteristics and within the declared
availability of DPC,” it added.
The MSEB said that it has not misinterpreted the PPA provisions
and the availability declarations now being sent by DPC are not
fully in accordance with annexure 8.1, schedule 9, of the PPA. “As
per the PPA, the plant should pick up 100-per cent generating capacity
within three hours.”
Moreover, the MSEB has told the DPC that the loading profile for
hot-and-cold start submitted by it was not as per the PPA.
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