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Showing contexts for: biomass in Gujarat Urja Vikas Nigam Limited vs Tarini Infrastructure Ltd.& Ors on 5 July, 2016Matching Fragments
3. Insofar as Civil Appeal Nos. 1973-1974 of 2014 are concerned, the respondent-power producer, namely, Junagadh Power Projects Pvt. Ltd., has set up a biomass based power generation plant and had entered into a PPA with Gujarat Urja Vikas Nigam Limited (distribution licensee) on 26.11.2010. The tariff incorporated in the PPA was earlier approved by the State Regulatory Commission by tariff order dated 17.05.2010 on the basis of cost of biomass at Rs. 1600 per MT with escalation of 5% per annum for a period of 20 years of operation. The Biomass Energy Developers Association sought revision of the biomass fuel cost to Rs. 3000/- per MT and for consequential redetermination of the tariff. The said review petition was dismissed by the State Commission in November, 2010. Thereafter, the power producer, on its own, moved the State Regulatory Commission seeking modification of tariff on account of air cooled condenser and also seeking increase in the biomass fuel cost and consequential redetermination of the tariff on that basis. The State Regulatory Commission by its order dated 05.12.2010, while allowing an increase in tariff on account of air cooled condenser, rejected the request of the power producer to review the price of biomass fuel cost, primarily, on the ground that the review of the price of biomass fuel having been earlier rejected in the case of Biomass Energy Developers Association, the review of the said price at the request of the power producer cannot now be allowed.
Specifically in the case of Junagadh Power Projects Pvt. Ltd. (respondent No. 1 in Civil Appeal Nos. 1973-1974 of 2914) it is urged that the demand raised by Biomass Energy Developers Association for redetermination of the tariff by enhancing the fuel cost to Rs. 3000 per MT had been dismissed earlier and the issue has attained finality in law. The PPA stood novated to the extent of modification of tariff allowed on account of the issue of air cooled condenser is concerned and no further, it is urged. For clarity it may be noted that in an earlier proceeding a higher tariff had been allowed to biomass based power plants with air cooled condensers.