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The issue dates back to 2014, when MSEDCL terminated the PPA with RGPPL over an under-supply of power from the plant. RGPPL, however, claimed that the distribution company (discom) took a unilateral decision and alleged that past dues were not cleared.
In 2005, GAIL and NTPC signed a joint venture, with each holding a 25 per cent stake in the power plant, to operationalise it. Gas supply for the plant was supposed to be delivered from the KG-D6 basin of Reliance Industries Ltd (RIL).
The project also housed a regasification facility, making it a suitable location for imported liquefied natural gas (LNG). However, depletion of supply from the KG-D6 basin again stalled operations at the power plant.
While 7.6 million metric standard cubic metres per day (MMSCMD) of gas was allocated to the petitioner from RIL’s KG-D6 block and 0.9 MMSCMD from ONGC’s marginal gas fields, gas supply from the KG-D6 basin started declining from September 2011 and eventually stopped on March 1, 2013. Supply of gas from ONGC’s field continued but with a reduced quantum, the order timeline noted.
The APTEL, in its order, has stated that if the payment of Rs 2,477 crore is not made within four months from the date of receipt of a copy of this order, the accounts of MSEDCL shall stand attached, and the aforesaid amounts shall be realised from the said bank account.