Petition No of 2017 BEFORE THE UTTAR PRADESH ELECTRICITY REGULATORY COMMISSION LUCKNOW

Transcription

1 PRESENT: Petition No of 2017 BEFORE THE UTTAR PRADESH ELECTRICITY REGULATORY COMMISSION LUCKNOW Hon ble Sri S. K. Agarwal, Chairman IN THE MATTER OF: Approval of cost to be incurred for installation of wet Limestone based FGD system and other associate system for compliance of MOEFC notification dated M/s Lanco Anpara Power Limited Registered Office: 411/9, Riverside Apartments, New Hyderabad, Lucknow Uttar Pradesh Petitioner AND 1. UP Power Corporation Limited (through its Chairman) 7 th Floor, Shakti Bhawan 14- Ashok Marg, Lucknow. 2. Chief Engineer (PPA) UP Power Corporation Limited 14 th Floor, Shakti Bhawan Ext. 14 Ashok Marg, Lucknow. Respondent The following were present: 1. Sri V.P. Srivastava, C.E. (PPA), UPPCL 2. Sri Sanjay Verma, SE (PPA), UPPCL 3. Sri Naeem Khan, EE, UPPCL 4. Sri Arun Tholia, GM Commercial, Lanco 5. Sri Vamsi Krishna Boppana, Sr. DGM Tehno Commercial, Lanco 6. Sri Amit Ojha, VP Legal, Lanco Page 1 of 5

2 7. Sri A. Radhakrishna, Head Engineer, Lanco ORDER (Date of Hearing 14 th December, 2017) 1. M/s Lanco has filed this petition for approval of cost of installation of wet Limestone based FGD system and other associate systems for compliance of MOEFC notification dated The Petitioner has submitted that MoEFCC (Ministry of Environment, Forest & Climate Change, Government of India) notified the Environment (Protection) Amendment Rules, 2015 to mandatory require all thermal Power Plant to comply with the revised norms which are mandatory in nature, non-compliance of which would adversely affect the approvals/licenses granted for the project operations. The petitioner added that in order to comply with the revised norms the petitioner is required to install wet FGD (Fuel Gas Desulphurization) system, NOx system and other associated system. 3. In reference to above, the petitioner has made following prayers through the present petition: (a) Pass an order granting in-principle approval to: i. The capital cost of approximately Rs Crore for installation of FGD system, its other associated facilities and towards the cost incurred on financing / interest and other incident expenditure. ii. iii. Approval of incremental O&M cost of Rs Crore per annum upon installation of FGD system and other associated facilities. Approval of Capital Cost of approximately Rs Crore for installation of Selective Catalytic Reduction (SCR) System. Page 2 of 5

3 iv. Approval of incremental O&M cost of Rs Crore per annum upon installation of SCR system and other associated facilities. v. Approve Incremental auxiliary consumption of 2.25% for FGD and 240 kw/unit for SCR for the calculation of Availability, Plant Load Factor and payment of fixed charges. vi. Approval of shutdown period required for installation and commissioning of FGD System and other associated facilities as Deemed availability under the PPA for the calculation of Fixed Charges. (b) Pass any such other and further relief as the Commission deems fit in the present circumstances. 4. UPPCL has filed counter on , vide which they have submitted that the Commission in Petition No of 2016 in similar matter, vide order dated had refused to grant in principle approval. Hence in view of the aforesaid order, the prayer of the petitioner for grant of inprinciple approval may be quashed. 5. Further, UPPCL has requested that in line with the Commission s direction in aforesaid order, the Commission may direct the petitioner to approach Central Electricity Authority (CEA) to decide specific optimum technology, associated cost and major issues to be faced in installation of different system like SCR etc. 6. UPPCL has submitted that the petitioner has not attached the environmental clearance by Ministry of Environment. Hence, requested the Commission to direct the petitioner to provide environmental clearance by Ministry of Environment to assess impact of change in norms on the petitioner from approved position. Page 3 of 5

4 7. During the hearing, Lanco representative reiterated its prayer made in the petition and requested the Commission to consider the matter under Change in Law. 8. In reply to which UPPCL stated that they have not objected on this issue. This was noted by the Commission. Commission s View 9. The Ministry of Environment Forest and Climate Change (MoEFCC) vide notification dated notified the Environment (Protection) Amendment Rules, 2015 amending the Environment (Protection) Rules, 1986, whereby requiring all the Thermal Power Plants to comply with the revised norms on or before In order to comply with the revised environmental norms as prescribed by the MoEFCC, the petitioner has proposed to install FGD System, NOx system, SPM system and other associated system. 10. The Commission observed that the Generation Tariff Regulation, 2014 which is squarely applicable to the case do not provide for the grant of inprinciple approval for the capital expenditure. Hence, the prayer of the petitioner for in-principle approval of Capital Cost for installation of FGD System and associate facility is not maintainable. 11. The Commission in a similar matter in Petition No of 2016 vide order dated had directed the RPSCL to approach Central Electricity Authority and MoEF in line with the CERC order dated 20 th March Relevant extract of the order is as follows:.the petitioner is directed to approach the Central Electricity Authority to decide specific optimum technology, associated cost and major issues to be faced in installation of different system like Page 4 of 5

5 SCR, etc. The petitioner is also directed to take up the matter with the Ministry of Environment and Forest for phasing of the implementation of the different environmental measures. Accordingly, the petitioner is granted liberty to file appropriate petition at an appropriate stage based on approval of CEA and direction of MoEF which shall be dealt with in accordance with law. 12. Hence, in line with the aforementioned order of the Commission, the petitioner is directed to approach CEA for the Central Electricity Authority to decide specific optimum technology, associated cost and major issues to be faced in installation of different system like SCR, etc. The petitioner is also directed to take up the matter with the Ministry of Environment and Forest for phasing of the implementation of the different environmental measures. 13. Accordingly, the petitioner is granted liberty to file appropriate petition at an appropriate stage based on approval of CEA and direction of MoEF which shall be dealt with in accordance with law. 14. With the above, the petition is disposed of. Place: Lucknow Dated: Page 5 of 5