The Appellate Tribunal for Electricity Bench (Aptel) headed by Justice Manju Goel observed that Tata Steel Ltd (TSL) failed to prove that its two units were sole captive units of the company and consumed more than 50 per cent power produced by it.
"We have found that on facts the appellants (TSL) failed to establish that units... Were captive generating units of TSL nor can it be said that the two units are captive units for steel works of the TSL," said the Aptel bench rejecting Tata Steel Ltd's petition.
TSL having three power generating units at Jojobera had sought status of captive power unit for its two later plants of 240 MW that have come up in the same area.
However, the tribunal rejected it be saying that as per the Electricity Rules, 2005 a power plant could qualify as captive power plant only if more than 26 per cent ownership is held by the captive user and more than 50 per cent of the production is consumed by it.
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"The appellant claim that the entire generation of the two units are consumed by them in the steel plant. But TSL do no hold 26 per cent share in JAPCOL or TPCL or in the two units in the question," observed the APTEL bench.
Power is supplied in TSL plant by Jamshedpur Company Ltd (JAPCOL), a company fully owned by Tata's power generating and distributing wing Tata Power Company Ltd (TPCL).