Private power producer Tata Power Co has moved to the Central Electricity Regulatory Commission against the Jhajjar power project of CLP India, alleging that the latter has misrepresented the date of commercial operation.

Tata Power Delhi Distribution Ltd (TPDDL), the distribution arm of Tata Power, has an agreement to source 10 per cent of the 1,320-MW project in Jhajjar, Haryana.

The Tata Group company has also sought refund of the entire amount paid by TPDDL as transmission charge with an interest of 14 per cent a year from the date of payment. TPDDL has incurred transmission charges of around ₹33 crore.

According to Tata Power, CLP does not have a fuel supply agreement. It managed to procure coal for conducting the commissioning test and declared commercial operation. Thereafter, negligible power has been supplied to Tata Power. This act of CLP to declare commissioning without the availability of coal was intended to deceive its off-takers. It wanted the buyers to believe that supply of power from the Jhajjar power station would commence, Tata Power said. According to an agreement, the Jhajjar plant is to supply 230 million units to Delhi and in the event of failure to provide the contracted capacity, liquidity damage will need to be paid by the producer. With this, Tata Power has prayed for relief from the regulator.

The 2x660-MW Jhajjar project was awarded by the State Government to CLP through international competitive bidding that took place in March 2008.

CLP India is part of the Hong Kong-based CLP group and was the first foreign company that won a major power generation project in India. While 90 per cent of the electricity from the project is to be supplied to Haryana, the balance was to accrue to Delhi through TPDDL to meet the growing demand in the capital city.

CLP India declared commercial operation of both the 660 MW units on March 2012 and July 2012, respectively.

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