The
Sasan saga has taken yet another turn with the Appellate Tribunal for Electricity (APTEL) setting aside the Central Electricity Regulatory Commission's (CERC)
earlier order on this Madhya Pradesh-based ultra mega power plant (UMPP).
This is a reprieve for Sasan Power Ltd - promoted by the Anil Ambani-owned Reliance Power - which runs the plant. In a press release issued on April 4, SPL had said the first unit of the plant had been commissioned and commercial operations begun from March 30.
The Western Regional Load Dispatch Centre (WRLDC), a power transmitter, however, approached the CERC contesting the claim. On June 20, the CERC agreed with the WRLDC and set aside the commissioning.
Now, the APTEL, to which SPL turned for reprieve after the CERC verdict, has in turn set aside the CERC's order. It refused to discuss the merits of the case, but agreed with the SPL's contention that the CERC order was not in line with the principles of natural justice, as the company had not been given a hearing before the order was passed. The APTEL has asked the CERC to hear the petition afresh without being influenced by its earlier decision.
This
unit in question is the first of six that will be commissioned at Sasan, each with a capacity of 660 megawatts (MW), thus generating in all 3960 MW. They will run using modern supercritical technology. Once operational, SPL will provide the cheapest power in the country. It will be 70 paise per kilowatt hour (KWh) for the first two financial years, followed by an average tariff of Rs 1.19 for the next 25 years.
Reliance Power and SPL are looking hard for ways to start commercial production at the first unit as soon as possible. But the unit allegedly failed its test in mid-June. In first week of July SPL and Reliance Power officials met officials from companies intending to buy power from them, but the meeting was inconclusive. As per CERC and Central Electricity Authority rules, the unit has to produce 95 per cent of its contracted capacity, and run on the designated fuel, in this case domestic coal. Moreover the purchase agreement mandates the testing of the supercritical technology and ramping up the rate of the unit. This test has to be overseen by an independent engineer. In the case of Sasan, it was the global firm Lahmeyer International.
"During the hearing before the CERC, the SPL had filed submissions only relating to the maintainability of the petition. We have the right to file a detailed reply on the merits after the admission of the petition. But the CERC hurriedly decided the matter at the admission stage itself, without giving an opportunity to the SPL of being heard on merits of the case," says the company's official spokesperson.
He added that CERC is required to explain why it pronounced the judgment so hurriedly.
Meanwhile, in the first week of August, Reliance Power officials met officials of the WRLDC's parent company PoSoCo, and were assured that the local dispatch centre will try its best to allow the new tests. This re-test, which is third attempt since March, is underway and will complete its 72 hour run on Wednesday night.
Special 
