JPL, a company formed by China Power & Light company, has developed the Mahatma Gandhi Thermal Power Plant with a capacity of 1320 MW at Jhajjar district in the State of Haryana.

The generating station was set up for supply of 90% of the net power generated to Haryana Discoms, namely Uttar Haryana Bijli Vitran Nigam Limited and Dakshin Haryana Bijli Vitran Nigam Limited. The balance 10% of capacity is to be supplied outside the state.

Two units of the project have been commissioned. However, the respondents are niether able to provide adequate coal for meeting the supply obligations nor authorized the petitioner to arrange coal from alternate source in terms of the PPA. As a result of non-availability of coal, the petitioner has not achieved the normal availability of 80% which is necessary for recovery of the entire fixed cost.

It has been claimed in the petition that against machines/ technical availability of 76.56%, the petitioner was able to achieve commercial availability of 31.05% in the financial year 2012-13.

Even though the power utilities have failed and neglected to fulfill the obligations under the PPA in relation to supply of coal and/ or approving procurement of coal from alternate source, the utilities have proceeded to wrongfully deduct capacity charges and also impose penalty to the tune of Rs. 55 crore.

The petitioner has requested the Commission to direct the power utilities to permit the petitioner to procure coal from alternate sources so as to meet its contractual obligations and allow recovery of the entire fixed charges at 80% availability.

CERC has directed the utilities to file their replies by October 11and has listed the petition for hearing on November 5.