Inter-state Power Trading: Provisional Nod For Three Cos

Mumbai, Nov 6: | Updated: Nov 7 2003, 05:30am hrs
The Central Electricity Regulatory Commission (CERC) plans to issue provisional permission to Power trading Corporation (PTC), Amalgamated Transpower (I) Ltd and Koyela Ltd for inter-state power trading up to December 31. CERC would give its nod under the Electricity (Supply) Act 1948, as it expects the necessary norms, in this regard, under Electricity Act (EA)) 2003, would be in place by December this year.

CERC chairman AK Basu told FE on Thursday that CERC has evaluated the petitions of PTC, Amalgamated Transpower (I) Ltd and Koyela Ltd and found that they fulfil the necessary requirements. He made it clear that CERC would give provisional permission only till December 31, and thereafter it would take a decision based on new norms.

Mr Basu said that the CERC would hear on Friday the petition filed by the Reliance Energy Limited (REL) seeking inter state power trading under section 15 (1) of the Electricity Act (EA) 2003. CERC plans to hold the hearing next week on the petition filed by Adani group.

CERC had asked REL to publish a notice of its application for grant of license in accordance with sub section (2) of section 15 of the EA 2003. REL had argued that section 52 of EA empowers the Central Commission to specify the technical requirements, capital adequacy requirement and credit worthiness for being an electricity trader. Section 79 of the Act, inter alia, requires the Commission to fix the trading margin for inter state trading of electricity, if considered necessary. In its petition, PTC had submitted that it has been trading in power on short term basis under the provisions of section 43(2) of the Electricity (Supply) Act 1948, since its incorporation in April 1999. During the financial year ended on March 31, 2003, PTC traded 4,178 million units and its trading transactions cover all the five electricity regions in the country and the neighbouring Bhutan.

The Amalgamated Transpower (I) Ltd in its petition submitted that it is putting up three hydro electric power projects in Sikkim, the implementation of which is in progress.