Maharashtra Commission Asks DISCOM to Settle Dues of Wind Power Generators

The petitioners including Aishwarya Rai Bachchan filed petitions against state’s DISCOM for delay of payment

September 5, 2019


Mrs. Aishwarya Rai Bachchan along with Relishah Export (RM) and Classic marble Company Private Limited (CMCPL), have jointly filed a case with the Maharashtra Electricity Regulatory Commission (MERC) against the Maharashtra State Electricity Distribution Company Limited (MSEDCL) for the delay in payments towards the power generated from wind energy projects.

Similarly, Vostok (Fareast) Securities Private Limited (VFSPL), Silverline Investment Company Private Limited (SICPL), and Bengal Cardboard Industries & Printers Private Limited (BCIPPL), have also filed petitions against MSEDCL for the same reason.

All six petitioners are wind power generators.

The commission has directed MSEDCL, the respondent, in this case, to reconcile the statement of accounts with the petitioners within two weeks and intimate the date by which the payment would be made.

The MSEDCL owes a total sum of ₹30.24 million (~$0.423 million) to the six wind generators.

The commission noted that MSEDCL made the payments of the outstanding principal amount and delayed payment charges as claimed by the petitioners in their original petitions. It also stated that MSEDCL has started paying some amount including late payment charges which were due to be paid to the wind generators after the original petition, but, there is still some amount pending for payment.

The Commission has now ordered the MSEDCL to note that if the payment is further delayed, penal interest of 1.25% per month on the late payment charges will have to be paid.

In May 2019, Mercom had reported that MERC reprimanded MSEDCL for the continued delay in meeting payment obligations to independent power producers, including delayed payment charge, and for disregarding the previous orders of the commission.

The state has been struggling to meet its solar and non-solar renewable purchase obligations (RPOs) and has been issuing tenders to procure solar and wind energy to meet the obligations. The tariff caps and the questionable creditworthiness of the DISCOM have earlier seen a tepid response for the tenders issued.

Tag: Maharashtra Electricity Regulatory Commission, MSEDCL, wind generators, petitions, respondent, delay payment, MERC, delayed payment charges