PPAs: HC stays CERC order

Private producers cannot sell power outside State

 
The CERC had directed Karnataka Power Transmission Corporation Limited(KPTCL), which is the State load despatch centre for Karnataka to grant open access for export of electricity by Davanagere Sugar Company, outside the state.

Challenging this, the Department of Energy, Government of Karnataka had filed a petition in the High Court stating that the CERC order was contrary to orders issued by the State in public interest, which stated open access sale was denied to State power producers.  The petition also challenged the CERCs jurisdiction to pass such orders in respect to a generating company situated within the state and asked to sell within the state.

Appearing on behalf of the Government, Advocate General Ashok Harnahalli said that the Government passed an order earlier, saying that 50 per cent of the power generated could be sold through open access and the rest had to be sold to the State. On June 6, 2006, this order was modified stating that all companies except those, who had entered into a power purchase agreement (PPA) with the State, could sell power outside the State.  The Government argued that it had entered into PPAs with several State and Central power generating stations. If the CERC order were to be implemented, then the State would not have the comfort of drawing power from both places and this would result in a steep hike in the cost of purchasing electricity, which would  have to be passed on to the consumers. Justice Anand Byrareddy issued a stay order for six weeks.

Institute fined

The High Court on Tuesday fined Vishwanatha Vidya Samsthe a sum of Rs 10,000 for requesting affiliation, despite a Court order directing them not to admit any students. The Samsthe which ran the Dr Radhakrishnan Teachers Training Institute,  had received permission  to conduct Diploma in Education Courses in Kannada. But it went ahead and started conducting classes in Tamil, which was not approved.