HC directs status quo on CERC's nod to JSL for open access

The Orissa High Court yesterday directed for maintaining the status quo in the matter pertaining to the open access allowed to Jindal Stainless Limited (JSL) by the Central Electricity Regulatory Commission (CERC).

It has directed both the Orissa government and JSL to submit written submission on the issue by 22 April 2009. However, the High Court explicitly stated that this order will not affect the proceedings of the Appellate Tribunal for Electricity (ATE).The matter will come up for further hearing on 22nd of this month.

The direction for maintaining the status quo was given by the Court on a petition filed by the Orissa government in the Orissa High Court, challenging the CERC order allowing JSL to wheel 75mw power to its steel plant at Hisar in Haryana.

It may be noted, the government owned Grid Corporation of Orissa (Gridco) has already moved ATE against the CERC order allowing the open access to JSL. The judgement of ATE on the maintainability of the Gridco’s appeal is reserved.

Sources said, in its petition before the Orissa High Court, the state government pleaded that as per the section 9 of the Electricity Act 2003, any dispute regarding the availability of transmission facility should be adjudicated by the appropriate commission which means Orissa Electricity Regulatory Commission (OERC) in this case.

On this ground, the CERC’s order allowing open access to JSL is not acceptable, the government stated in its submission before the court. Further, CERC passed the order without impleading the state government as a party in the proceedings before it and without affording them an opportunity to show cause and hearing.

However, JSL continues to supply 80 to 100 Mw from its Captive Generating Plant (CGP) at Kalinga Nagar to the state grid. Though the company has two units of 2x125Mw CGPs, only one is generating power at the moment. Once the second units, which is down due to the transformer problem, is operationalised, the company will be in a position to supply more power to the state grid.