The Orissa High Court in an interim order has directed Jindal India Thermal Power to supply power of 120 MW daily to the GRIDCO at the rate of Rs.3.36 paise per unit in view of the acute power crisis the State is currently confronted with.

On the further condition of payment of 50% of the transmission cost of the demand raised by the Central Transmission Utility subject to the cap of Rs.5 (five) crore payable by GRIDCO, the court ordered

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The said amount of transmission cost is payable in installments, such as, rupees one crore when the first demand of transmission is raised by CTU irrespective of the amount of demand for the month of May, 2022, rupees two crores for the supply of June, 2022 on similar terms and the last installment of rupees two crore shall be paid subject to the maximum cap of rupees five crores or fifty percent of the transmission cost, whichever is less, for the entire period of interim arrangement, Justice S. Pujahari stated in the order.

JITP, a power generating company, has established a thermal plant in the State to generate 1000 MW of power in two units by signing a MoU 26 September 2006 with the State on specified terms and conditions.

Terms and conditions included, inter-alia, that the State shall facilitate the allocation of coal block, a captive coal mine for generation of power supply or an alternative long term coal linkage from the coal mining and the State’s share as agreed upon to be provided by the company at the tariff to be determined by the appropriate Regulatory Commission. Pursuant to the said MoU, JITP established the Thermal plant and was given a captive mine.

However GRIDCO alleged that JITP is playing foul play by diverting the State’s entitlement to its other consumers mostly outside the State, as a result of which, the State is deprived of getting cheapest thermal power available within the State, and in turn, the consumers of the State are burdened with additional tariff.

The power generating company as per its commitment shall supply the power of 100 MW by 6 May, 2022, and the supply shall be scaled up to 120 MW latest by 13 of May, 2022. It is further directed that payment security shall be provided by GRIDCO in the form L/C as agreed upon and to ensure the payment within seven days of submission of the tariff bill by the petitioner (Jindal Power).

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