Before the

MAHARASHTRA ELECTRICITY REGULATORY COMMISSION

World Trade Centre, Centre No.1, 13th Floor, Cuffe Parade, Mumbai 400005.
Tel. 022 22163964/65/69 Fax 22163976
Email: mercindia@merc.gov.in
Website: www.merc.gov.in

Case No. 137 of 2021

Case of Maharashtra Airport Development Company Ltd seeking approval of power

procurement plan, Power Purchase agreement (PPA) and adoption of Tariff for
medium term procurement of power starting from 1 November, 2021 to 31 October,
2025

Coram
Sanjay Kumar, Chairperson
I.M.Bohari, Member
Mukesh Khullar, Member

Maharashtra Airport Development Company Ltd. Petitioner

Vs
1. Manikaran Power Ltd. Respondent No. 1
2. Sai Wardha Power Generation Ltd. Respondent No. 2
3. Maharashtra State Electricity Transmission Co. Ltd. (MSETCL) Respondent No. 3
4. Maharashtra State Load Despatch Centre Ltd. (MSLDC) Respondent No. 4
5. Abhijeet MADC Nagpur Energy Pvt. Ltd. Respondent No. 5

Appearance

For the Petitioner Shri Vasant Pandey(Rep.)

For Respondent No. 1 None
For Respondent No. 2 None
For Respondent No. 3 Shri. Sanjeev Bhole (Rep.)
For Respondent No. 4 Shri. E.T. Dhengle (Rep.)
For Respondent No. 5 None

ORDER
Date: 28 October, 2021

1. Maharashtra Airport Development Company Ltd (MADC), being deemed Distribution

Licensee for MIHAN SEZ area at Nagpur, has filed this Petition dated 30 September
2021under Section 86 and Section 63 of the Electricity Act, 2003 (EA, 2003) read with

MERC Order in Case No. 137 of 2021 Page 1 of 13

 Competitive Bidding Guidelines issued by the Ministry of Power (MoP), Government of
India (GoI) dated 30 January, 2019 seeking approval of Power Procurement Plan for FY
2021-22 to FY 2024-25; adoption of tariff determined through transparent bidding
process for a Medium-Term power procurement starting from 1 November, 2021 to 31
October, 2025 and for approval of PPA with Manikaran Power Ltd (MPL).

2. MADC’s main prayers are as under:

a) Petition for approval and directions under Section 86 of the Electricity Act, 2003
read with “Revised Guidelines for Procurement of Electricity for Medium Term
from Power Stations set up on Finance, Own and Operate (FOO) basis” dated
30thJanuary, 2019 issued by Ministry of Power, Government of India.

b) Adopt the Lumpsum Tariff offered by M/s MPL of Rs. 4.48 per unit discovered
through competitive bidding process;

c) Approve the plan for Medium Term Procurement of power in its capacity as a
Distribution Licensee as per ‘Guidelines for Medium Term procurement of power by
Distribution Licensees through Tariff based bidding process’ dated 30 thJanuary
2019 issued by the Ministry of Power for the period of four (4) years starting from
01.11.2021 to 31.10.2025;

d) Allow the deviation for interface point as 220 kV AMNEPL Bus and MSETCL
transmission Network at Khairi-Khurd, Hingana, Nagpur.

e) Allow MADC to charge consumers in the MIHAN SEZ area, the tariff that is
applicable for the respective category of consumers in the MSEDCL area of supply,
as modified from time to time, as the ‘maximum ceiling tariff’ in its area of supply,
till such time the ARR and the tariff determined by this Hon’ble Commission, and
approve the appropriate tariff schedule as applicable in the MSEDCL area of
supply;

f) In case the requirement of power in the MIHAN SEZ increases from maximum
quantum estimated for every year, then in that case MADC be please allowed to
procure the additional requirement through IEX

g) Direct MSETCL and AMNEPL (in liquidation) for extending their co-operation and
support to MADC in supplying power to consumers in MIHAN SEZ.

3. MADC in its Petition has stated as follows:

3.1 MADC, a Company incorporated under the Companies Act, 1956 has been constituted in
year 2002 by the Government of Maharashtra as the nodal agency in the planning and
implementation of a Multi Modal International Hub Airport at Nagpur (MIHAN) for
development of Vidarbha region along with a Multi-Product SEZ.

MERC Order in Case No. 137 of 2021 Page 2 of 13

 3.2 The Commission vide its Order in Case No. 16 of 2011 dated 3 August, 2012 declared
MADC to be a deemed Distribution Licensee under Section 14 of the EA, 2003 for the
notified SEZ area.

3.3 Before the present Petition, MADC had approached the Commission for approval of
power procurement plan and adoption of tariff of Rs. 5.25 per kWh discovered through
bidding process in Case No 20 of 2021. The Commission vide its Order dated 3 May,
2021 had rejected the adoption of tariff and had directed MADC to carry out rebidding
within six month from the date of the Order and till that time allowed scheduling of
power at Rs 5.25 per kWh as per Letter of Award (LoA) placed with MSEDCL.

3.4 Accordingly, MADC floated a tender on Discovery of Efficient Electricity Price (DEEP)
Portal on 16 July, 2021 for procurement of power up to 16 MW for the period from 1
November, 2021 to 31 October, 2025.The maximum requirement for first year was stated
to be13 MW with increase of 1 MW every year so that maximum requirement for fourth
year would become16 MW. The requirement was worked out based on Availability
based Tariff (ABT) meter data of MADC for March to June 2021.

3.5 MADC has made major change in billing methodology in new tender. The payment of
Energy Charge is based on ‘final implemented schedule’ at interface point i.e. Interface
of MSETCL and AMNEPL at 220 kV Khiri Khurd Hingana substation. In earlier tender,
payment of Energy Charge was based on actual drawal data recorded in interface meter.

3.6 The Tender was floated on DEEP portal with a deviation in interconnection point.
Tender notice advertisement was published in The Indian Express (Pune, Nagpur,
Lakhnow, Jaipur, New Delhi, Chandigarh, Kolakata, Mumbai, Vadodara and
Ahamadabad editions) and in Loksatta (Pune, Nagpur, Delhi, Mumbai and Aurangabad
editions) on 17 July, 2021.Bid submission date was extended from 17 August, 2021 to 21
August, 2021 at the request of Bidder, MSEDCL. Request of MPL to further extend the
date for 10 days was rejected considering the timelines for power procurement process.

3.7 Load profile for Energy calculation for Availability is as follows:

No. of
Sr. Availability requirement in MW
Time Period Hours
No.
A B C D E
01.11.2021 to 01.11.2022 to 01.11.2023 to 01.11.2024 to
31.10.2022 31.10.2023 31.10.2024 31.10.2025
1 00:00 to 06:00 6 8.00 8.00 9.00 9.00
2 06:00 to 09:00 3 10.00 10.00 11.00 11.00
3 09:00 to 17:00 8 13.00 14.00 15.00 16.00
4 17:00 to 22:00 5 10.00 10.00 11.00 11.00
5 22:00 to 24:00 2 8.00 8.00 9.00 9.00
Energy in MUs for one day 24 0.248 0.256 0.280 0.288
Energy in MUs for one year 90.52 93.44 102.48 105.12
period from 1.11.2021 to
31.10.2025

MERC Order in Case No. 137 of 2021 Page 3 of 13

3.8 MSEDCL and MPL responded to the bid and their bids were found technically qualified.
The E-Reverse Auction (E-RA) was carried out on 31 August, 2021. MPL emerged as
the lowest bidder with quoted lump sum rate of Rs. 4.48 per kWh which included fixed
charges as Rs. 2.24 per kWh to be paid on the basis of ‘Declared Capacity’ as per load
profile and energy charges as Rs. 2.24 per kWh to be paid on the basis of ‘final
implemented schedule’ at interface point.

3.9 In order to ascertain market rates, MADC has considered Power market rates from
24August, 2021 to 31 August, 2021.It is seen that maximum rate is Rs. 19.96 per kWh
and average rate of Rs. 7.45 per kWh for 8 days. Further, the rates quoted by MPL are
16.67 % less than existing tariff of Rs. 5.25 per kWh being paid by MADC to MSEDCL.

3.10 The successful bidder would supply power at the interface point of 220 kV AMNEPL
(bus) and MSETCL transmission network at Khari-khurd Hingna, Nagpur. Hence, in this
regard, MADC seeks a deviation in the interconnection point considering that MADC
distribution network in MIHAN SEZ is not directly connected to State Transmission
Utility (STU).

3.11 MADC has already sought Medium Term Open Access (MTOA) from STU (i.e.
MSETCL) from 1 April, 2021 to 31 March, 2025 for existing contract with MSEDCL.
MADC is in the process of seeking amendment to MTOA approval for change of source
to Sai Wardha Power Generation Company Ltd (SWPGCL) and period of MTOA
beyond 31 October,2021 as 1 November,2021 to 31 October ,2025.

3.12 Presently MADC has 3 HT consumers on 33 kV level, 17 HT consumers on 11 kV level

and 53 consumers on LT level.

3.13 It is requested to approve applicability of MSEDCL Tariff for the respective categories
as maximum ceiling tariff as per the proviso to Section 62(1) (d) of the EA, 2003 till
such time its Aggregate Revenue Requirement (ARR) is finalised and the tariff is duly
determined by the Commission.

3.14 Further in case the requirement of power in the MIHAN SEZ increases above the
mentioned quantum due to any event which MADC could not reasonably foresee, then in
that case MADC may be allowed to procure the same through Power Exchanges.

4. MSETCL in its submission dated 21 October, 2021 has stated as follows:

4.1 STU has already granted MTOA for 16 MW to MADC for the period 1 April, 2021 to 28
February, 2025 vide letter dated 25 March, 2021. MADC vide letter dated 27 September,
2021 had requested for amendment in MTOA.

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4.2 MADC is planning to purchase power from SWPGCL through MPL. It is brought to the
kind notice of the Commission that because of non-payment of transmission charges,
STU has already discontinued the open access permission granted to SWPGCL.

4.3 Also, insolvency resolution plan passed by National Company Law Tribunal (NCLT)
Hyderabad Bench, Hyderabad is challenged before Hon’ble Supreme Court by MSETCL
vide Civil Appeal No. 3354 of 2020. The outcome of the said appeal is awaited.

4.4 Hence, as per MADC request STU has not amended MTOA for the transfer of 16 MW
power through Intra-State Transmission System for the period of 1 November,2021 to 31
October,2025.

5. MSLDC in its submission dated 21 October, 2021 has stated as follows:

5.1 As per directives of the Commission in Case No 236 of 2020, it is requested to direct
MADC to complete the connectivity with STU network within specified time in a time
bound manner.

5.2 During implementation of Deviation Settlement Mechanism (DSM) Regulation 2019,

MSLDC has registered MADC in State Entity Registration Module on provisional basis
considering interface point mentioned in the Commission’s Order in Case No 236 of
2020.Accordingly, MADC will have to meet all the relevant provisions stipulated in
MERC (Transmission Open Access) Regulation 2016 and Maharashtra State Grid Code
Regulation 2020, while granting MTOA and connectivity (change of interface point with
MSETCL) to MADC.

6. At the time of E- hearing held on 22 October, 2021

6.1 MADC reiterated the submission made in Petition. On the issue of amendment in MTOA
with a change in source, MADC stated that being Distribution Licensee, it had been
recognised as Transmission System User (TSU) as per InSTS Order and hence requested
the Commission to direct MSETCL for providing MTOA.

6.2 MSETCL and MSLDC also reiterated the submissions made in the Petition.

Commission’s Analysis and Ruling

7. MADC has been recognized by the Commission as a deemed Distribution Licensee vide
its Order in Case No. 16 of 2011 dated 3 August,2012 under Section 14(b) of the EA,
2003 being the Developer of the MIHAN SEZ.

8. MADC had earlier approached the Commission in Case No. 20 of 2021 for adoption and
approval of medium-term power procurement at Rs. 5. 25 per kWh. The Commission
vide its Order dated 3 May, 2021 had rejected the adoption of tariff as it was not market
reflective. Further, in the same order, the Commission directed MADC to carry out

MERC Order in Case No. 137 of 2021 Page 5 of 13

 rebidding for power procurement within six months from the date of issue of the Order
and till that time (for ensuring continuity of power supply to consumers in MIHAN SEZ
area)allowed scheduling of power at Rs 5.25 per kWh as per Letter of allotment (LoA)
placed with MSEDCL. Relevant extract of the Order is reproduced below:

“2.The Commission approves the revised power procurement plan of Maharashtra

Airport Development Company Ltd.

3. The Commission rejects adoption of tariff of Rs. 5.25/kWh, being non-reflective of

market price.

4. Maharashtra Airport Development Company Ltd to undertake re-bidding of its

power requirement, complete the procedure and file the petition for adoption of tariff
within six months from the date of the Order.

5. The Commission allows Maharashtra Airport Development Company Ltd to

continue scheduling of power against LoA issued by it at rate of Rs. 5.25/kWhin order
to maintain continuity of power supply to consumers in MIHAN SEZ.

6. Such power purchase cost may not be allowed to be passed on fully to consumers
as it is. The Commission will take appropriate view on this issue based on new rate as
discovered in re-bidding process and accordingly may disallow certain power
purchase expenses during Multi Year Tariff (MYT) Order.”

9. Accordingly, post completing rebidding process, MADC has filed the present Petition for
adoption and approval of medium-term power procurement. Based on the submissions
made during the proceedings, following issues need to be decided in the present matter:

a. Approval of Medium-Term Power Procurement Plan

b. Adoption of tariff and approval of PPA

c. MTOA Permission

d. Other issues

The Commission is addressing above issues in the following paragraphs.

10. Issue A: -Approval of Medium-Term Power Procurement Plan

10.1 The Commission vide its Order in Case No 236 of 2020 dated 14 January, 2021 has
approved the medium power procurement plan submitted by MADC for four years
starting from 1 March, 2021 to 28 February, 2025 as follows:

MERC Order in Case No. 137 of 2021 Page 6 of 13

 Period 09:00-13:45Hrs 14:00-16:45 Hrs 17.00-19:45 Hrs
Base Demand (RTC) of 6 MW
1.03.2021 to 28.02.2022 7 MW 6 MW 5 MW
1.03.2022to 28.02.2023 8 MW 6 MW 5 MW
1.03.2023 to 28.02.2024 9 MW 8 MW 6 MW
1.03.2024 to 28.02.2025 10 MW 8 MW 6 MW

10.2 Further considering the difficulty in execution of the earlier power procurement plan, the
Commission vide its Order in Case No 20 of 2021 dated 3 May, 2021 had approved the
revised Medium Term Power Procurement Plan as “up to 16 MW” and load profile for
every year as follows:

Hours Capacity Commencement Delivery Point

Required (In of Supply
MW)
00:00 Upto 16 MW 1.03.2021 to At the interface point of 220 KV AMNEPL
to 28.02.2025 Bus and MSETCL Transmission Network at
24:00 Khairi-Khurd, Hingana Nagpur

Load profile
Period 00:00 to 06:00 to 09:00 to 14:00 to 17:00 to 20:00 to
06:00 09:00 14:00 17:00 20:00 24:00
1.03.2021 to 6 9 13 12 11 6
28.02.2022
1.03.2022to 28.02.2023 6 9 14 12 11 6
1.03.2023 to 6 9 15 13 12 6
28.02.2024
1.03.2024 to 6 9 16 14 12 6
28.02.2025

10.3 The Commission notes that MADC in the present petition has slightly changed the load
profile for every year by keeping the maximum demand for years the same as approved
in above table. Details of the same are as follows:
Period 00:00 to 06:00 to 09:00 to 17:00 to 22:00 to
06:00 09:00 17:00 22:00 24:00
1.11.2021 to 31.10.2022 8 10 13 10 8
1.11.2022 to 31.10.2023 8 10 14 10 8
1.11.2023 to 31.10.2024 9 11 15 11 9
1.11.2024 to 31.10.2025 9 11 16 11 9

10.4 The Commission notes that MADC has not provided any reasoning for changes in the
load profile. It is also noticed that there is addition of 1 or 2 consumers in HT and LT
Network.

10.5 The Commission notes that MADC being distribution licensee has limited area of SEZ
and is having limited number of consumers. It is best suited to project its load profile in
consultation with its consumers. Also, there is no change in peak power requirement of
“up to 16 MW demand” approved by the Commission in the previous Order. Hence, the

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 Commission approves the power procurement plan as submitted by MADC in the present
proceedings.

11. Issue B: Adoption of tariff

11.1 The Commission notes that Competitive Bidding Guidelines dated 30 January, 2019,
require the Commission to adopt the tariff discovered through competitive bidding
process based on provisions of guidelines as reproduced below:

3. The tariff determined through the DEEP e-Bidding process using e-reverse Auction
based on these Guidelines comprising the Model Bidding Documents shall be adopted
by the Appropriate Commission in pursuance of the provisions of section 63 of the
Act.

11.2 The Commission notes that based on projected load / power procurement plan, MADC
has undertaken procurement of power on Medium-Term basis for the period of 1
November, 2021 to 31 October, 2025 as per competitive bidding guidelines notified by
the Central Government under Section 63 of the EA, 2003 with deviation of
interconnection point in bidding conditions.

11.3 The Commission finds that MADC has also published Notice on 17 July, 2021 in Indian
Express and Loksatta for giving publicity to bids. Further, in accordance with Clause 3.1
of the Standard Bidding Guidelines, MADC has appointed PFCCL as the Authorised
Representative to conduct the e-bidding for Medium Term Power Procurement.

11.4 Last date for submission of bid was 17 August, 2021 which was further extended to 21
August, 2021at the request of the prospective bidder(s). After extending the bid
submission deadline, 2 bidders participated for supplying the demand.

11.5 Post E-Reverse Auction process conducted on 31August, 2021, rate of Rs. 4.48 per kWh
has been discovered as lowest rate.The Commission notes that the rate discovered by
MADC through competitive bidding process i.e. Rs. 4.48per kWh is lower than existing
power procurement rate of Rs. 5.25 per kWh and the previous contract rate of 4.89 per
kWh

11.6 On the issue of rate discovered through competitive bidding, the Commission notes that
in the recent past it has adopted following Short Term power procurement rates for
various SEZ based Distribution Licensees:
Sr
Particulars Quantum in MW Rate in Rs/ kWh
No
1 Laxmipati Balaji Supply Chain Rs 4.48 / kWh
Management Limited (Case No 1MW (RTC) at Distribution
211 of 2020) periphery
2 Jawaharlal Nehru Port Trust (Case Rs 3.60 / kWh
2MW (RTC)
No 5 of 2021) at Distribution

MERC Order in Case No. 137 of 2021 Page 8 of 13

 Sr
Particulars Quantum in MW Rate in Rs/ kWh
No
periphery

3 KRC DISCOMs (Mindspace

Business Parks Private Limited;
5 MW; 4.5 MW
Gigaplex Estate Private Limited; Rs 3.18 / kWh
and 3 MW (RTC)
KRC Infrastructure and Projects at STUperiphery
Private Limited) (Case No 69 of
2021)
4 Nidar Utilities Panvel LLP (Case Rs 3.59 / kWh
2.60 MW (RTC)
No 94 of 2021) at STUperiphery
5 Eon Kharadi Infrastructure Private Rs 3.95 / kWh
Limited (SEZ Phase I) (Case No 7 MW (RTC) at Distribution
105 of 2021) periphery

11.7 The Commission has also analyzed the result of recent Short-term bidding carried out on
e-bidding portal (DEEP Portal) by Distribution Licensees in Maharashtra and
summarized the same as under:

Sr Quantum Rate Discovered

Particulars period
No in MW in Rs/ kWh
1 BEST 50 16.10.2021 to 31.10.2021 RTC 11.26
50 16.10.2021 to 31.10.2021 (17 Hrs) 9.99
50 1.11.2021 to 30.11.2021 RTC 8.11
50 1.12.2021 to 31.12.2021 RTC 8.11
100 1.12.2021 to 15.12.2021 (17 Hrs) 8.68
2 AEML-D 200 1.10.2021 to 31.10.2021 RTC 5.75
100 1.10.2021 to 31.10.2021 RTC 6.74
3 TPC-D 26 1.10.2021 to 31.10.2021 RTC 5.54
75 15.11.2021 to 30.11.2021 RTC 5.54
50 1.12.2021 to 15.12.2021 RTC 5.54
4 AEML-D 120 1.09.2021 to 30.09.2021 RTC 4.5
60 1.09.2021 to 30.09.2021 RTC 4.5
100 1.09.2021 to 30.09.2021 RTC 4.95
120 1.09.2021 to 30.09.2021 RTC 4.95

11.8 It is important to note that all above rates discovered by other licensees are for short term
contract (less than one year) whereas MADC’s proposed contract is for medium term (4
years). Hence, such rates are not strictly comparable, but as can be seen, MADC’s
medium term rates are around the same rates.

11.9 Section 63 of the EA mandates the Commission to adopt the tariff if such tariff has been
determined through transparent process of bidding in accordance with the guidelines
issued by the Central Government.

11.10 In view of the foregoing, the Commission notes that Power Procurement rate
discovered by MADC fulfils mandate and requirements for adoption as set out in
Section 63 of the EA, 2003. Accordingly, the Commission adopts following Power

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 Procurement rate for MADC for the period from 1 November, 2021 to 31 October,
2025

Type of Load Name of the Bidder Source Price

Rs/kWh
Up to 16 MW Sai Wardha Power
Manikaran Power
(RTC) based on Generation Private Ltd 4.48
Limited
load profile Warora, Maharashtra

11.11 The Commission notes that MADC has stated that as compared to earlier bidding
conditions, in present bid they have made changes in billing methodology. Earlier
payment of Energy Charge was based on actual drawal data recorded in interface meter,
but in the present bidding process same has been made as ‘final implemented schedule’
at interface point. The Commission notes that through above change, payment of
energy charge has been made based on scheduled energy which is consistent with
Deviation Settlement Mechanism being implemented in Maharashtra with effect from
11 October, 2021.

11.12 The Commission also notes that PPA signed with MPL is in line with Standard Bidding
documents issued by MoP. Accordingly, the Commission approves PPA signed with
above successful bidder at the rate and for the quantum mentioned in the above table.
MADC shall submit copies of final PPA for the records of the Commission.

11.13 Having adopted competitively discovered tariff as above, the Commission notes that in
its Order dated 3 May, 2021, it has clearly stated that power supply at the rate of Rs.
5.25 per kWh was allowed as a temporary measure for maintaining continuity of power
supply and once re-bidding is conducted, the Commission may take appropriate view of
allowing differential cost at the time of tariff proceeding. Accordingly, the Commission
notes that such differential rate is Rs. 0.77 per kWh (5.25 – 4.48) and the Commission
may take view on disallowing power purchase expenses to that extent for the period of
1 March, 2021 to 31 October, 2021during tariff proceedings.

12. Issue D:MTOA Permission

12.1 The Commission notes that State Transmission Utility has given approval to MTOA for
16 MW to MADC for the period 1 April, 2021 to 28 February, 2025 but has not
amended the same as per request of MADC for change in source i.e. from MSEDCL to
SWPGCL. STU has cited non-payment of transmission charges by SWPGCL and
pendency of Civil Appeal No. 3354 of 2020 as reasons for the same.

12.2 In this regard, the Commission notes that in its InSTS Order dated 30 March, 2020 in
Case No. 219 of 2019 it has already recognised MADC (being Distribution Licensee)
as Transmission System User and has already considered transmission capacity rights
of 12-13 MW for MADC. Accordingly, MADC is paying InSTS monthly charges and
MSLDC charges. As per regulatory provisions, Distribution Licensee is not required to

MERC Order in Case No. 137 of 2021 Page 10 of 13

 seek open access of sourcing power from any InSTS connected generating source, if
such capacity is within transmission capacity rights. Further any drawal beyond the
transmission capacity rights by transmission system users needs to be dealt with as per
applicable provisions of MYT Regulations. Hence, MADC being distribution licensee
and recognised as Transmission System User under InSTS order, it need not apply for
open access for sourcing power from any generator connected to Maharashtra STU.

12.3 Accordingly, the Commission directs STU and MSLDC to not insist on MADC asking
it to seek medium term Open Access for sourcing power from SWPGL. They should
allow scheduling of such power in a similar manner as is being scheduled for other
Distribution Licensees in the State.

13. Issue C: -Other issues

13.1 MADC has again prayed for approval for deviation in bidding documents relating to
interconnection point, allowing levy of MSEDCL’s tariff as ceiling tariff

13.2 The Commission has already ruled on these issues in its Order 3 May,2021 in Case No
20of 2021 as follows:

“11. Issue b: Deviation in the bidding document for interconnection

……………
11.3 The Commission notes that in its earlier Orders, it has approved deviation in
interconnection point considering the infrastructure developed and the
circumstances of MADC. As same conditions still exist, the Commission allows
deviation with regard to the interconnection point for the procurement of medium-
term power.
………………
12. Issue c: Approval for applicability of ceiling tariff of MSEDCL

12.1 The Commission further notes that MADC in the present Petition has again
prayed that it should be allowed to levy tariff to its consumers by considering
MSEDCL’s tariff as ceiling tariff till Commission decides tariff for MADC. The
Commission in its Order in Case No 174 of 2020 dated 29 August 2020 has already
raised concern as regards MADC seeking the same relief again and again in each
Petition. Relevant extract of the Order is as follows:

13. The Commission further notes that in present Petition, MADC has also
prayed that it should be allowed to levy tariff to its consumers by considering
MSEDCL’s tariff as ceiling tariff till Commission decides tariff for MADC. In this
regard, the Commission notes that such relief has already been granted by this
Commission in its Order dated 20 January 2015 in Case No. 149 of 2014 as
follows:

MERC Order in Case No. 137 of 2021 Page 11 of 13

 “20. In its capacity as a Deemed Distribution Licensee and to fulfil its
obligation to supply electricity to consumers in the MIHAN SEZ, MADC has
sought approval for short term power procurement and provisional tariff for
supplying power to consumers. The Commission notes that MSEDCL is
another Distribution Licensee in the same area. Thus, MADC’s Licence area
falls under the proviso to Section 62(1) of the EA, 2003 which provides that, in
case of distribution of electricity in the same area by two or more Distribution
Licensees, the Commission may fix a ceiling tariff for retail sale of electricity.
MSEDCL’s tariff is the only approved tariff for the area. Hence, the
Commission rules that the tariff approved for the respective consumer
categories of MSEDCL will be the ceiling Tariff for the MIHAN SEZ area.”

Based on the above dispensation only, MADC is levying tariff to its consumers
for the last five years. Therefore, the Commission does not understand propriety
of seeking same relief again.

Now again MADC is again praying for the same relief in present Petition which only
shows casual approach of MADC not commensurate with the statutory
responsibilities of a Distribution Licensee. The Commission also notes that MADC
has recently filed its MYT Petition before the Commission which is being processed
separately. Till that time, above quoted ruling shall be applicable in respect of
levying tariff to consumers in MADC area.

Above rulings are squarely applicable to the present matter.

13.3 MADC has also requested to direct MSETCL for cooperation and support to supply
power to MADC consumers. In this regard considering the AMNEPL’s dedicated
transmission line as the only connection point to STU, the Commission vide its Order
in Case No 236 of 2020 has directed MADC and MSETCL to make conjoint speedy
efforts to execute the project of 132 KV GIS substation. Detailed Project Report of
MIHAN GIS has been approved by the Commission in June, 2021 and the
Commission expects MSETCL and MADC to work for execution of the project on fast
track in view of NCLT proceedings of AMNEPL and MADC having to bank on a
single source of interconnection in the present situation.

13.4 Further, MADC has requested the Commission to allow additional procurement of
Power through Power Exchanges in case the demand exceeds the projections. The
Commission allows MADC for procurement of such additional power ensuring that the
procurement is through the cheapest available power source.

14. Hence following Order.

ORDER

1. The Case No. 137 of 2021 is allowed.

MERC Order in Case No. 137 of 2021 Page 12 of 13

 2. The Commission approves the revised power procurement plan of Maharashtra
Airport Development Company Ltd. as stated in para 10.5 above.

3. Under Section 63 of the Electricity Act, 2003, the Commission adopts Short
Term Power Procurement for the period of 1 November, 2021 to 31 October,
2025 by Maharashtra Airport Development Company Ltd as stated in para
11.10 above.

4. Accordingly, PPA signed with M/s Manikaran Power Limited is approved.

Maharashtra Airport Development Company Ltd., to submit copy of Final PPA
to the Commission for records.

Sd/- Sd/- Sd/-

(Mukesh Khullar) (I.M. Bohari) (Sanjay Kumar)
Member Member Chairperson

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