The Supreme Court rejected Tata Power’s appeal of the Maharashtra Electricity Regulatory Commission’s (MERC) decision to award Adani Electricity a 7,000 crore transmission contract on a nomination basis in Tata Power Company Ltd Transmission V. MERC & Ors.
In order to avoid competitive bidding under Section 63 of the Act, can a big infrastructure project be granted on a nomination basis under Section 62 of the Electricity Act?
The Act gives States enough latitude to control intra-state transmission lines, and the appropriate state commissions have the authority to set and enforce tariffs, according to a bench chaired by Chief Justice of India DY Chandrachud.
“Electricity Act 2003 read with Maharashtra govt GOM does not make tariff only through bidding route. This case has brought to notice the ad hoc nature of state electricity transmission. MSETCL flip flops have led to waste of time,” the Court added.