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Bhubaneswar, March 10: In a major setback to Reliance Infra, the Delhi-based Appellate Tribunal on Electricity (ATE) has rejected the former’s plea for a stay on the recent decision of the Orissa Electricity Regulatory Commission (OERC) which cancelled its licences to run three power distribution companies (discoms) in the state.
“Challenging OERC order for cancelling the licences of the three distribution companies, the Reliance Infra had moved the tribunal seeking an interim relief and a stay on the order. But the tribunal, while admitting the appeal, refused to issue a stay on the order and has posted the hearing in the case to March 24,” OERC secretary GK Dhal told the media here.
Sources said, the ATE, while admitting the Reliance petition, has also asked the OERC and the state government to file their replies by March 17.
Coming down heavily on the Reliance Infra for its poor performance and gross negligence in power distribution, the OERC last week had revoked the licences of North Eastern Electricity Supply Company of Orissa (Nesco), Western Electricity Supply Company of Orissa (Wesco) and Southern Electricity Supply Company of Orissa (Southco) owned by Reliance Infra. The commission appointed the chairman and managing director (CMD) of the Grid Corporation of Orissa (GRIDCO) as the administrator of these three companies with immediate effect.
Energy secretary Suresh Mohapatra had earlier said that though the discoms had been working for last 15 years, their performance was not satisfactory. They were unable to bring down the aggregate technical and commercial (AT&C) losses, which stayed at 40 per cent in contrast with Delhi and Mumbai where the losses were only 15-20 per cent.
“The discoms did not invest a single pie from their own funds to improve the power distribution infrastructure in the state which forced the commission to revoke their licences,” Mohapatra had told the media March 4.
The Reliance Infra had been managing these three discoms after their privatisation by OERC in 1999.
Earlier, the state government in 2005 had also revoked the licences of these three discoms on the same ground. However, challenging the decision, they had moved the Central Electricity Regulatory Commission (CERC) and the Supreme Court and got a relief.
