Maharashtra Electricity Regulatory Commission order creates panic in Mihan

NAGPUR: Panic has gripped industries in Mihan as Maharashtra Electricity Regulatory Commission (MERC) has refused to recognize the power purchase agreement (PPA) between Maharashtra Airport Development Company (MADC) and Abhijeet Power. The ruling came on technical grounds.

Now, Abhijeet can no longer sell power to MADC and Mihan industries legally. It is also not clear as to how Abhijeet will recover bills from them for the power supplied so far. Abhijeet had not raised any bills as MERC had not decided the tariff.

RB Goenka, who had represented Mihan Industries Association (MIA) in the Commission, said the order was a setback for the industries. “Now MADC can purchase power from exchanges in short term and take post facto permission from MERC. If it wants to buy power from Abhijeet it will have to do the same. The third option is the industries buy power from MSEDCL.”

Buying power from MSEDCL is the last resort for industries as its industrial tariff is close to Rs 7 per unit. State government had promised to supply power to them at Rs 2.97 per unit while Abhijeet wanted a rate of Rs 4.53 as generation cost had increased. Goenka said Mihan industries would appeal to state government to issue directives to MERC to review the order.

 

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