Aptel Order for APPEAL No. 99 of 2017; CPCPL vs PGCIL; LTA Agreement Delay Leads to Dispute Over Bank Guarantee

Chettinad Power Corporation Private Ltd.

Vesus

Power Grid Corporation of India Limited, Central Electricity Regulatory Commission, Central Transmission Utility of India Limited

Background:

1. The order dated 8th March, 2017 passed by 2nd Respondent – Central Electricity Regulatory Commission (in short “Commission” or “CERC”), vide which it held that as per Central Electricity Regulatory Commission (Grant of Connectivity, Long-term Access and Mid-term Open Access in the Inter-State Transmission and related matters) Regulations, 2009, (herein after referred to as “Connectivity Regulations”), the Long-term access applicant being effected by Force Majeure or reasons beyond its control cannot be a ground for nonsigning of the Long Term Access Agreement and the failure to sign the LTA agreement within the stipulated period would necessarily result in encashment of Bank Guarantee submitted along with LTA application, has been assailed in this appeal.