Tribunal fines state power company R1 lakh | mumbai | Hindustan Times
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Tribunal fines state power company R1 lakh

State power distribution company Mahavitaran will have to pay a penalty of Rs 1 lakh for delayed payment to renewable power generators.

mumbai Updated: Oct 20, 2010 00:43 IST

State power distribution company Mahavitaran will have to pay a penalty of Rs 1 lakh for delayed payment to renewable power generators.

The Appellate Tribunal for Electricity (ATE), the apex body in energy matters, gave this ruling on October 1.

Last September, Maharashtra Electricity Regulatory Commission (MERC) had directed Mahaviratan to pay the bills to producers within 45 days and also pay interest on delayed payments.

The case was moved by Renewable Energy Association of Maharashtra. When challenged by Mahavitaran, ATE upheld the MERC verdict and also endorsed a heavy penalty which is to be paid within four weeks from the date of verdict.

Mahavitaran officials were unavailable for comment.

But sources in the company said the directives would be challenged in the Supreme Court.

There was a spar between Mahavitaran and renewable power generators when the former failed to pay the bills. Mahavitaran buys unspecified amount of energy from these producers as it is mandatory under government’s energy policy since 1998.

The matter went to MERC in 2002 after which an order was given in favour of generators.