CERC had granted extension to MIDC so that the state government issues a notification under the Electricity Act authorising it for trading in electricity. However, MIDC informed that CERC that it would like to withdraw its petition as the government has yet to issue necessary notification. MIDC had filed its petition with an intention to trade power to the power starved industrial units in the state. Besides, MIDC is promoting captive power projects in its industrial estates. CERC has permitted MIDC to withdraw its petition and file the fresh one after the necessary formalities are completed.
MIDC had argued that it would be able to organise power deals from various generation companies and would be organise much needed power supply to industries situated in the industrial estates run by it. About six month ago, the MahaVitaran, which is a state distribution company, had to impose two day staggering in industrial estates following the rise in power deficit to around 5,500mw. MahaVitaran had announced power shut down of 16 hours, 32 hours and 40 hours but subsequently eased it after the power situation was improved. MIDC wanted to tackle such a situation by trading power.
However, CERC brought to the MIDCs notice that it would not possible to issue inter state trading license as it was not authorised under the Electricity Act.
It must be mentioned here that CERC had so far issued inter state trading licenses to 42 different entities across the country. According to the information available with the CERC and Central Electricity Authority, power traders have traded 20.96 billion units of power in 2007-08.