Tribunal rules in favour of GMR Power in dispute with TNEB

The Appellate Tribunal for Electricity has dismissed an appeal filed by the Tamil Nadu Electricity Board (TNEB) against an order of the Tamil Nadu Electricity Regulatory Commission on payment of dues to GMR Power Corporation Ltd under a power purchase agreement.

GMR Power Corporation Limited (GPCL), a subsidiary of GMR Infrastructure Limited (GIL), had approached the Tamil Nadu Electricity Regulatory Commission (TNERC) for adjudication of disputes with Tamil Nadu Electricity Board (TNEB) arising out of the power purchase agreement with TNEB.

TNERC, by its order dated 16 April 2010, had allowed the claims of GPCL and directed TNEB to pay approximately Rs480 crore with interest in six equal monthly installments to the aggrieved.

TNEB then moved an appeal before the Appellate Tribunal for Electricity (APTEL). However, APTEL, by its judgment dated 28 February 2012, dismissed the appeal and upheld the order of TNERC.

While accepting the appeal, APTEL had, in an interim order, on 19 November 2010, asked TNEB to clear the dues to GPCL.

GPCL can now retain the amount of Rs537 crore (including interest) received till date from TNEB by virtue of the interim order in settlement of the dues from TNEB.

The APTEL order has also adjudicated on an interlocutory application filed by TNEB, wherein APTEL has directed that the interest to be computed on the amount of fuel invoices payable by GPCL to Hindustan Power Corporation Limited for credit periods should be paid or set-off against payments due to GPCL from TNEB.