New Delhi: The Delhi high court on Thursday directed the Centre to consider the plea of power company Mandakini Exploration and Mining Ltd’s (MEML) seeking clarification on whether it intended to cap the fixed charge component of the rate of electricity generated from plants that won coal blocks in the recent auction.
A bench of justices B.D. Ahmed and Sanjeev Sachdeva has asked the power ministry to decide on MEML’s plea by 15 April. MEML is a joint venture between Jindal India Thermal Power Ltd, with a 73% stake, and Monnet Power Company Ltd.
MEML, through lawyer Kapil Sibal, has contended that the proposed cap could potentially destroy the company. The cap is to prevent thermal power plants from increasing tariff on the electricity they generate.
The court also allowed MEML time till 17 April to deposit a bank guarantee of Rs.544.97 crore and a payment of nearly Rs.108 crore under the Coal Mines Development and Production Agreement. The company is the successful bidder for the Mandakini block in Odisha.