The Indian Railways, which will soon enter into a long-term power purchase agreement for 500 Mw power from Dabhol project, has approached the Central Electricity Regulatory Commission (CERC) with a plea to grant connectivity, long- and medium-term open access in inter-state transmission. The petition comes close on the heels of the board of Ratnagiri Gas & Power (RGPPL)'s approval last week to split the project into two entities — one for gas-based electricity and the other for liquefied natural gas re-gasification terminal. The company expects to restart the power generation from November 1.
Indian Railways' plea is also crucial as it is a deemed licencee for transmission and distribution of electricity and Section 14 of the Electricity Act, 2003 provides that the appropriate government will be a deemed licencee to transmit or distribute electricity or undertake trading in electricity. The same provision envisages that deemed licencees need not take licence for the purpose.
Further, Indian Railways has submitted it was comfortable being treated as part of the state entity. It had filed its petition after the power purchase agreement was entered between the Central Railway and Gujarat Urja Vikas Nigam for supply of 100 Mw of electricity at Gujarat Energy Transmission Corporation (GETCO) periphery (inter-connection point between GETCO, state transmission utility (STU) and central transmission utility system of western region. According to the arrangement, the transmission system of PowerGrid Corporation of India will be available from such point to the periphery of the STU of the state where the electricity purchased is to be conveyed to Indian Railways' network.
Source- Business standard