The tribunal's decision came as a big setback for JSPL, which was planning to develop the industrial park as a model. The firm is also taking up a major expansion plan to step up its steel capacity to 5 million tonne per annum by 2011.
The Chhattisgarh State Electricity Regulatory Commission (CSERC) had granted distribution licence to JSPL on November 29, 2005, for supplying power to the industrial park spread over 750 acres. The company was supplying power from its captive power plant at the rate of Rs 2.50 per unit.
According to company officials, the park was set up after the company sealed a pact with the Chhattisgarh government on October 23, 2002.
The state government granted permission for supplying power to the industrial units on January 29, 2003, while the state-run Chhattisgarh State Electricity Board (CSEB) gave permission for construction of transmission line for supply of power to the industrial park on May 31, 2003.
All these permissions were granted before the Electricity Act, 2003, came into effect in the state.
The company applied to the CSERC for the distribution licence according to the provisions of the Electricity Act, 2003. CSEB, however, vehemently opposed, despite having earlier given permission for laying transmission line for supplying power to the industrial park.
CSERC finally granted distribution licence to the JSPL.
CSEB filed an appeal before the Appellate Tribunal for Electricity. The Tribunal pronounced judgment in JSPL's favour on May 11, 2006. CSEB later moved to the apex court to challenge the tribunal's verdict. The Supreme Court referred the matter back to the Tribunal, which, on May 7, 2008, cancelled the distribution licence granted to the company.
"The development has come as a big setback for the company, which has been planning to develop the park as model industrial park in the country," JSPL Executive Director AK Mukherji said. He said the company would be making necessary efforts to find a solution to the crises.
The company today stopped the power supply in the park that put the owners of the 32 industrial units in a fix. They were in constant touch with the company officials throughout the day.
But the officials expressed their inability in wake of the tribunal order. Since the CSEB does not have transmission lines for supplying power to these units, fate of 32 industries set up with an investment of Rs 200 crore now hangs in a balance.
