Tata Power challenges commissioning of China Light and Power's Jhajjar plant

The Central Electricity Regulatory Commission has admitted a petition disputing the commissioning of China Light and Power's (CLP) double 660 MW supercritical power plant at Jhajjar in Haryana. The petition, filed by Tata Power' s distribution company in Delhi (TPDDL), challenges the commissioning of the unit two years ago, claiming the special purpose vehicle CLP set up for the plant, called Jhajjar Power Ltd (JPL), claimed commissioning of the unit, without ensuring a proper coal linkage.

According to the buying agreement, the distribution company has entered into a contract with its own sister concern Tata Power Trading Corporation (TPTCL), which has the mandate to buy electricity from JPL. The Haryana government is a leading buyer from JPL. The petition alleges that CLP's two units which were commissioned in March 2012 and July 2012, respectively, could not provide consistent power supply to buyers. It adds that without a coal linkage, JPL should not have commissioned the plant and start commercial operations.  

Asked for his reaction, Jasraj Singh Virdi, CLP spokesperson said via email that since the matter was subjudice, the company would not comment on it. However, other officials in CLP say that the contract with the Haryana government required JPL to seek clearances from it. The clearances were delayed, so it could not get the coal linkage in time. CLP has already moved the CERC against Haryana government on this matter.

The TPDDL's petition has called the commissioning "a fraud".

TPDDL maintains it will only accept the commissioning date of the power plant from the day it starts receiving 80% of the contracted capacity. "There were days, when TPDDL was receiving no power from CLP," says one of the officials from TPDDL.

The commissioning of the first Sasan Power Ltd plant had been similarly challenged in March last year. The CERC's active intervention in the report encouraged TDDPL to file its case, says a top official.

TDDPL officials note that since they have already paid Rs 35 crore to Power Grid Corporation to transmit the power obtained from CLP could not provide, it deserves a refund of the money. The petition also says that TPDDL the liquidation damages, which are Rs 10,000 per MW everyday (for first sixty days) and there on 15,000 MW everyday till commissioning was achieved.