MP loses Sasan battle in tribunal, will have to pay Rs 400Cr

Bhopal: Madhya Pradesh will have to pay more than Rs 400 crore to Reliance's Sasan Ultra Mega Power Project (UMPP) after its plea was turned down by appellate body.
Appellate Tribunal for Electricity (APTEL) decided in favour of the power producer on March 31, 2016 and approved its claim that Unit 3 of Sasan UMPP started commercial operations on March 31, 2013.
On August 8, 2014, Central Electricity Regulatory Commission decided in favour of procurer states and ruled the claim of the power producer that the Unit 3 of the UMPP attained its commercial operations date on March 31, 2013.
As per power purchase agreement between Madhya Pradesh Power Management Company Limited and Sasan UMPP, the state agency will get power at the rate of 70 paise per unit for the first two years and then the rates will be revised to Rs 1.31 per unit from the third year of production.
"If March 31, 2013 is accepted as the commercial operations date (COD), then the first year of power purchase will end on April 1, 2013 in just a single day and from April 1, 2014, power tariff from Sasan will have to be calculated at Rs 1.31 per unit instead of 70 paise per unit," said an official.
Officials of state government are mulling over the available legal options in the matter.
"We are seeking legal opinion in the matter. Only option left is to appeal in Supreme Court," managing director of the Madhya Pradesh Power Management Company Limited, Sanjay Shukla told TOI.
"Under the present scenario Sasan will get more than Rs 1,000 crore and of this around Rs 400 crore will be paid by us," he said.
Officials however estimate the cost borne by the state to be more than Rs 400 crore. "Besides the difference in tariff, interest will also have to be paid and thus it will be nothing less than Rs 450 crore" said an official.
Sasan UMPP is situated in Singrauli district of Madhya Pradesh and has six units producing 660 MW each.
Fed moves SC for appeal
The All India Power Engineers' Federation (AIPEF) has challenged the order of the appellate tribunal and appealed in Supreme Court on May 5, 2016.
All India Power Engineers Federation represents the power engineers of the country and has filed the present appeal to safeguard the consumers' interest and also as Power Engineers, to maintain discipline in the establishment of the generating units with proper quality and specification, said the representatives of the organisation.