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This is an archive article published on January 3, 2001

Monitor Dabhol power purchases too — MERC

Mumbai, January 2: The Maharashtra Electricity Regulatory Commission (MERC) in an interim order issued today has made it clear that the po...

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Mumbai, January 2: The Maharashtra Electricity Regulatory Commission (MERC) in an interim order issued today has made it clear that the power purchases made by Maharashtra State Electricity Board (MSEB) from different sources, including the Dabhol Power Project, will be under continuous review throughout the year 2000-2001.

The order was issued against a petition filed by activist SR Paranjpe alleging that the board has violated the Commission’s May 5 order which had restricted purchases from Dabhol by following the merit order despatch method.

The Commission observed that the petition merits further trials and the hearings on this case will restart on January 22, 2001, though while denying any interim relief. The petitioner had asked for an ad interim relief of stopping purchases from Dabhol immediately as it drains the board around Rs 2.5 crore per day. The petitioner had also furnished an annexure that in the three months last year, the board had violated the permissible rates for Dabhol power.

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However, grapewine has it that the state power minister Padamsinh Patil has intervened in the Commission proceedings on the matter since the petition is quite sensitive in view of the current controversy kick-started by the allies of DF government.

Sources informed that the top officials of the Commission had regular meetings with the minister during the last week and that the state government has sought some time before an order. It is learnt that there have been differences of opinion within the Commission to grant an ad interim relief of some sort to offer justice to the petitioner. In fact, unlike the other interim orders issued by the Commission, Amitabh Rajan, secretary, MERC has been signed on behalf in the order.

Also to another main complaint raised in the petition on questioning MSEB whether the massive load shedding in the state is genuine, the order hardly gives any view of the Commission on the subject. Instead, it observes that the board has submitted that there has been a rising demand of power from subsidised sectors. Though there had been counter arguments during the hearing that the share of subsidised sector power is not justified for the amount of load shedding implemented by the board, the order does not mention anything of that sort, opine analysts.

However, in its affidavit filed by MSEB, the board has admitted that it was restricting power purchase from DPC only because it was unable to bear the cost of energy. In fact, it is on the same lines that Commission order also work as by directing merit order despatch, the board is forced to give priority to least cost power.

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