' '-

ORDER

OF THE

WEST BENGAL ELECTRICITY REGULATORY COMMISSION

IN CASE NO. OA-299/18-19

IN REGARD TO THE APPLICATION SUBMITTED BY HIRANMAYE

ENERGY LIMITED (HMEL) FOR FINAL APPROVAL OF INVESTMENT

PROPOSAL IN 2No STAGE FOR 3 X 150 MW COAL BASED THERMAL

POWER PROJECT AT HALDIA, DIST. EAST MIDNAPORE.

PRESENT:

SRI SUTIRTHA BHATTACHARYA, CHAIRPERSON

SRI PULAK KUMAR TEWARI, MEMBER

In regard to the application submitted by Hiranmaye Energy Limited (HMEL) for final approval of investment proposal in 2nd stage for 3 X 150 MW coal based thermal power project at Haldia, dist. East Midnapore

FACTS IN BRIEF

1.0 This is in regard to the Petition submitted by Hiranmaye Energy Limited(HMEL), formerly

India Power Corporation (Haldia) Limited or IPC(H)L, on 201h February, 2019 for final

approval of the Investment proposal in the 2nd stage for an amount of Rs. 4274.79 crore in

respect of 3 X 150 MW coal based thermal power project set up by Hiranmaye Energy

Limited at Haldia, Midnapore (East), West Bengal in terms of regulation 2.8.1.4.3, 2.8.1.4.4

and 2.8.1.4.6 of West Bengal Electricity Regulatory Commission (Terms and Conditions

of Tariff) Regulations, 2011 (in short "Tariff Regulations").

2.0 IPC(H)L had submitted petition on 19.10.2012 for In-principle approval, as required in Tariff

Regulations 2011, for 3 x 150 MW coal based TPP project in Haldia with estimated cost of

Rs 2672.00 Crore and supplementary petition on 24.07.2015 with estimated cost Rs

3307.00 Crore. Additional clarification on the later petition was submitted on 14.10.2015.

3.0 In-principle approval was accorded vide WBERC Order dated 20th November 2017 for Rs.

2672.09 Crore for 3 X 150 MW project.

4.0 The 1st and 2nd units of their 3 X 150 MW project achieved commercial operation with

effect from 13th August 2017 and 31st December 2017 respectively. HMEL has informed

that the 3rd unit is not yet commissioned, however it is under development and expected

in near term based on the power demand supply scenario of the state.

OBSERVATION

5.0 The Commission observed that three years have elapsed after COD of 1st unit and three

years of COD of 2nd unit is going to be completed on 31.12.2020.

6.0 Relevant portion of Regulation 2.8.1.4.3 related to the time of seeking second stage final

approval of investment proposal is reproduced below:

"In the second stage, the final approval of investment proposal shall be sought for by the concerned owner of the generating station through an application prior to placement of order(s) after conducting due competitive bidding mentioning the project cost on the basis of the agreed price with the supplier(s) and contractor(s) and mentioning the final details of all the parameter as submitted in the first stage for 'in principle' clearance of investment

West Bengal Electricity Regulatory Commission 2

\,.

In regard to the application submitted by Hiranmaye Energy Limited (HMEL) for final approval of investment proposal in 2nd stage for 3 X 150 MW coal based thermal power project at Haldia, dist. East Midna ore

as mentioned in regulation 2. 8. 1.4. 2 of these regulations "

However, HMEL has sought the 2nd stage final approval of investment .proposal on

20.02.2019 i.e. after COD of first two units (13th August 2017 and 31st December 2017

respectively).Regarding 3rd unit, the information of HMEL in its petition dated 20.02.2019

is reproduced below:

"The unit-3 is not yet commissioned, however it is under development and expected in near term based on the power demand supply scenario of the state."

7.0 Thus the Commission thinks that this is not tenable to consider the final approval of the

Investment proposal in the 2nd stage submitted by HMEL at present.

8.0 Relevant portion of regulation 2.8.1.4.13 of Tariff Regulations, 2011, related to the time of

seeking final project cost approval post COD is reproduced below:

"Within three years of COD of the last unit of a generating station the generating company or the licensee shall submit a detailed report showing whether the provisions of different penalty(ies) or incentive(s) of contractual conditions are applied or not. The fact of waiver or non-application of penalty or incentive shall be specifically mentioned. Such analysis shall be given against each such provision specifically as stipulated in the contract. Only on submission of such reports, the final project cost of the generating station will be

determined."

ORDER

9.0 In view of above, the Commission decides not to consider the final approval of the

Investment proposal in the 2nd stage submitted by HMEL at present.

1 O.O The Commission further directs HMEL to submit fresh petition for the final project cost as

per the provision of regulation 2.8.1.4.13 of the Tariff Regulations and along with audited

figures and substantial documents in support of variation in project cost from In Principal

approval order.

11.0 The Commission has taken exception to the deviation from the Regulation by the

generating company (HMEL) but restrains itself from initiating proceedings u/s 142 of the

Electricity Act 2003 owing to its being first omission of its kind by the Petitioner.

West Bengal Electricity Regulatory Commission 3

In regard to the application submitted _by Hiranmaye Energy Limited (HMEL) for final approval of investment proposal in 2nd stage for 3 X 150 MW coal based thermal power project at Haldia, dist. East Midna ore 12.0 With the above decision, the application of HMEL for final approval of the Investment

proposal in the 2nd stage is disposed off. 13.0 Let a copy of this Order be served upon Hiranmaye Energy Limited.

sd/- PULAK KUMAR TEWARI (MEMBER)

sd/- SUTIRTHA BHATTACHARYA

(CHAI RP ER SON)

Date : 14.10.2020

West Bengal Electricity Regulatory Commission 4