Sanjay Jog

Mumbai, June 3: The Dabhol Power Company (DPC) had defaulted and misdeclared the availability of power immediately after the commissioning of Dabhol phase-I in May and July 1999, according to sources from the Maharashtra State Electricity Board (MSEB) .

The board had also planned to serve a total rebate of Rs 300 crore for these defaults. However, it ultimately pardoned the DPC and verbally waived the rebate.

MSEB sources confirmed these misdeclarations and defaults, which took place before January 28, February 13 and March 29, 2001. These sources told The Financial Express that in view of the series of meetings between the MSEB and DPC officials and clarification provided by the latter, the rebate was not charged. “Had MSEB slapped rebate of around Rs 150 crore for May default misdeclaration, DPC was obliged to compute it in its billing statement thereafter as MSEB is entitled to claim rebate only at the end of four months block of January, May and September,” sources added.

MSEB had argued that as per the power availability curve incorporated by the DPC in the power purchase agreement (PPA), it was entitled to provide the instructed power by MSEB within three hours. However, during these occasions, the DPC, though admitted that it had defaulted on the availability of power, later clarified that the Dabhol plant machines were new.

The DPC had also questioned the board’s move to slap rebate in the past and is believed to have told that MSEB cannot do so as the Dabhol plant was developed on base load capacity and not peak load capacity.

MSEB had argued that in terms of Clause 8.4(b) in the event of shortfall in delivery of energy contrary to DPC’s declaration, Available Baseload Capacity is calculated at ten times the difference between the Declared Baseload Capacity (DBC) and the Active Power produced subtracted from the total active power generation during that availability period or hour.“This leads to a rebate (under Clause 10), which is meant to adjust capacity payments made during the period having regard to the Rated Baseload Capacity as well as to discourage misdeclaration by DPC of DBC,” sources said.

Under Clause 10.2(b), the capacity payments payable by MSEB are subject to adjustments of rebate in January for the first four months of the peak season (October to January) and as per Clause 10.2(c) in May for the whole of the peak season.

The board is entitled to a rebate under these provisions. The DPC is obliged under Clause 11.1(b) to compute such rebate in its billing statement for the months of January, May and September. The reason being that in the PPA the year is divided into the peak season (October to May) and monsoon season (June to September).

In addition to this, MSEB had said that the DPC should follow standard and not ambient conditions at the time of declaration of base capacity.