CASE NO. 5 of 1998

Present:
Shri S. C. Mahalik, Chairman
Shri A. R. Mohanty, Member
Shri D. K. Roy, Member

For Petitioner:
Mr.J.P. Gupta, General Manager (Commerce)

For Affected Party:
Mr. B.P. Rekhani General Manager (RAU), GRIDCO. Bhubaneswar.

Date of argument: 9.07.98

Date of Order : 22.07.98

M/s. Kaleast Bottling(P) Ltd., a manufacturing unit of Indian made foreign liquor (I.M.F.L.), situated at Kalibati, P.O. Motto. Dist. Khurda with head office at 100, Satyanagar, Bhubaneswar has applied for permission u/s 44 of the Electricity (Supply) Act, 1948 (hereafter, for short, the Act, 1948) read with Sec. 21 (3) of the Orissa Electricity Reforms Act, 1995 (hereafter, for short, the Act, 1995) to set up an additional 63 KVA Kirloskar make Diesel Generator set at its factory site (Kalibati) for emergency power supply.

2. On 29th December, 1997, the petitioner filed an application for the above purpose through Executive Engineer(Elect.), Khurda Electrical Divn., Khurda. The Superintending Engineer, Gridco, Bhubaneswar forwarded the said application to the Commission Secretary vice his letter No.1619 dt.l2.2.98 indicating therein the status of meter of the petitioner, obviously an electrical consumer, and also furnishing information that the petitioner had been permitted earlier to instal one 10 KVA D.G. set by the Chief Engineer (Commerce), Orissa State Electricity Board (OSEB) under his letter No. Com.-V-6/85-(Pt.-V)8547 dt.4.6.86.

3. According to the application dated 29.12.97 and other data furnished, the petitioner required consent of the Commission for installation of a 63 KVA Kirloskar make D.G. set at an estimated cost of Rs.300600/-_ (Xerox copy of the bill dt.24.11.97 filed) to generate power at Rs.2 per unit. The petitioner further clarified that the said D.G. set would only run as a "standby" set, during the power failures or interruptions.

4. Gridco (Affected Party) in its letter No. Com-V11-6/98-4437 dt.7.3.98 pointed out that it has no objection to the proposed installation subject to the following conditions:

1. Permission given by the Chief Engineer (Commerce) vice O.S.E.B. Order No.Com-V-6/85/8547 dt.4.6.88 for operation of a 10 KVA capacity stand-by D.G. set is to be withdrawn.

2. The petitioner should not run the stand-by set when its power supply is disconnected by Gridco for non-payment of Gridco's dues or any other reason relating to observation of statutory provisions and rules governing electricity industry.

5. Inspite of this, the Commission decided to undertake and dispose off the application of the petitioner by a proceeding.

5.1 As a result of this decision, the petitioner was directed to submit its application afresh in accordance with the procedures laid down in Part 11 of the OERC (Conduct of Business) Regulations, 1996.

5.2 The Affected Party, too, filed a fresh counter complying with the requirements of Regulations 43 and 44 of the OERC (Conduct of Business) Regulations, 1996 after the petitioner filed a fresh application as required by the Commission.

5.3 In the Counter filed on 4.6.98, the Affected Party, in addition to what it pointed out in its letter dt.7.3.98, averred that the petitioner has not supported the unit cost calculation of power generation from the D.G. set with any substantive materials. Any way, calculating the unit cost of generation from the available data, the Affected Party determined the said figure at Rs.3.99 which is, undoubtedly, a much higher rate, keeping in view the rates such as Rs.2.65 at 400 volts and Rs.2.55 at 11 KV per unit respectively at which the petitioner received energy from the Affected Party as a Medium level Industry and the tariff applicable to such type of industries.

5.4 The Affected Party further pleaded that the petitioner has not furnished any statement regarding interruptions of power supply to his unit.

6. In response to the averments raised in the counter, the petitioner filed a rejoinder on 20.6.98 together with a statement showing power failures to the factory between 1.7.97 to 8.6.98.

6.1 In the rejoinder, the petitioner emphasised the need to have a D.G. set installed on the ground of frequent power failures on the strength of the facts and figures which it submitted for the period from 1.7.97 to 8.6.98 rather than disputing the unit cost of generation of power as has been calculated by the Affected Party.

7. At the hearing, Mr. J.P. Gupta, who appeared for the petitioner's firm accepted all the terms and conditions raised by the Affected Party in pare 5 of the Counter dt.4.6.98 to the grant of consent. In the aforesaid premises, Mr. B.P. Rekhani who appeared for the Affected did not raise any objection to the grant of consent u/s 44 of the Act, 1948 because it has been clearly averred that permission or consent could be granted to the petitioner if the teens and conditions imposed were unconditionally accepted and agreed to.

8. That being the position in this Case, the Commission is of the opinion that the petitioner is entitled to be given consent u/s 44 of the Act, 1948 read with Section 21(3) of the Act, 1995 for setting up a D.G. set as specified in the application form subject to the terms and conditions as are indicated in the Order :

That the petitioner is allowed to set up a 63 KVA D.G. set on a stand-by mode for generating power to meet its requirement during failure of power supply subject to the following terms & conditions:

1. The petitioner is allowed to run the D.G. set only during power interruptions/failures from the Gridco to the petitioner's factory.

2. The permission already granted by the Chief Engineer (Commerce), Orissa State Electricity Board (OSEB), in his letter No.8547 dt.4.6.86 for installation and operation of a 10 KVA D.G. set is hereby withdrawn and cancelled.

3. The petitioner shall not, without the further consent from Commission, make any material variation in the mode of operation of the D.G.Set stated in this order.

4. All statutory provisions related to installation & safety in this regard are to be fulfilled and compliance obtained from Chief Electrical Inspector, Govt. of Orissa.

5. The energy generated shall not be sold to others.

6. The installation should be subject to inspection by the respective field Superintending Engineer (Elect)., E.E. (Elect.)/ Electrical Inspector, Orissa, Bhubaneswar or their authorised representatives and should comply with the requirements as indicated by them.

7. An energy meter duly tested should be installed near the DG set for recording the energy generated and consumed. The meter should be duly sealed by the concerned Electrical Inspector.

8. The installation shall be energised only after written permission of Chief Electrical Inspector,Orissa/Electrical Inspector, Orissa or his authorised representatives.

9. Actual installation of the set should be in conformity with the specification furnished by the petitioner.

10. The electricity duty as due to the State Government shall be paid within the prescribed time as directed by Electrical Inspector.

11. The permission granted may be withdrawn at any time if any one or more of the conditions are violated.

12. The consent for installation shall remain valid for a period of 24 months from the date of issue and shall lapse automatically, if the unit for which permission now granted is not installed during that period.

(D.K.ROY)
MEMBER

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