The Supreme Court has rejected a civil appeal filed by the Power Grid Corporation of India Ltd against the Appellate Tribunal for Electricity (APTEL) for setting aside the Central Electricity Regulatory Commission’s refusal to declare the Raigarh-Pugalur-Thrissur HVDC line as a National Asset of Strategic Importance. 

The Bench of Chief Justice of India D.Y. Chandrachud, Justice J.B. Pardiwala and Justice Manoj Mishra on Friday dismissed the petition filed by Maninder Singh, Senior Advocate appearing for PGCIL, calling it devoid of merits. 

However, the Apex Court granted liberty to the largest Indian power distributor to approach CERC for relief. It further directed the electricity regulator to decide on the case on or before October 31. 

The PGCIL sought before the Supreme Court, 100 percent recovery of transmission charges as fixed by CERC in its order dated September 29, 2022 till CERC decided on the tariff petitions afresh as remanded by APTEL.

The Power Grid had earlier filed an application before the CERC for the fixation of tariffs and recovery of costs on Southern States, including Tamil Nadu.

The electricity regulatory commission had rejected the request of Tamil Nadu Generation and Distribution Corporation (TANGEDCO) to declare the Raigarh-Pugalur-Thrissur Hvdc Transmission Assets erected by the Power Grid Corporation as a National Asset of Strategic Importance and apportion the cost among all the states in the country. 

CERC said the Southern states of the country, including Tamil Nadu, would incur extra cost of Rs 500 crore every year due to the higher tariff fixation.  

Aggrieved by this, the TANGEDCO preferred an appeal before the APTEL, which set aside the CERC order, calling it discriminatory and untenable. 

APTEL further directed the Commission to reconsider the Raigarh-Pugalur-Thrissur HVDC transmission assets as national assets and pass an appropriate order. Not satisfied with this order of APTEL, the Power Grid filed an appeal before the Supreme Court.

Senior Advocate P, Wilson, appearing for TANGEDCO, contended before the Supreme Court that the appeal filed by Power Grid was devoid of any merits and that the CERC order had been passed without looking into the inputs given and concerns of the southern states, particularly Tamil Nadu and all expert bodies.

He submitted that there would be no prejudice caused to PGCIL as an excess amount of Rs 1300 crore was already paid by TANGEDCO and was available with the Power Grid corporation.  

The Counsel submitted that CERC, while passing the impugned order, failed to take note of the direction issued by the Ministry of Power to designate the Raigarh-Pugalur-Thrissur HVDC line as a national component, which was done after the Chief Ministers met the Prime Minister on this issue.

As per Singh, the electricity regulator had already declared Adhani Mundra Mohindergargh’s transmission portion of the assets as National assets and all states have been directed to pay the costs. Likewise, Biswanath Chariali-Agra HVDC transmission lines were declared as national assets by CERC and all states were bearing the price. 

These two transmission lines were erected in North Eastern states and benefit only Northern States, he noted. 

The counsel said that all statutory authorities, including the Central Electricity Authority of India (CEA), the Power System Operation Corporation Limited (POSOCO) and the Central transmission Utility (CTU) recommended the Central power regulator to treat the Raigarh-Pugalur-Thrissur HVDC lines as a national Asset of Strategic Importance.

However, the CERC by order dated September 29, 2022, declared that Raigarh-Pugalur-Thrissur HVDC transmission assets were only regional assets, which escalated more cost on each state and thereby, directed to pay exorbitant tariffs. 

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