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Suo-moto process to review the status of upcoming generation projects of MSPGCL

Author(s): Prayas (Energy Group) Publication Date: May, 2017

The MERC in its Orders in Case Nos. 103 of 2010, 71 of 2011 and 78 of 2013 had approved 21 upcoming projects with installed capacity of 11320 MW. Out of these, Projects of 2000 MW capacity are operational and 3230 MW capacity Projects have recently achieved COD.

In MYT Order dated 30 August, 2016 in Case No. 46 of 2016 the Commission had directed MSPGCL to review the financial viability of those Generation Projects which are at early stages of planning considering the alternative sources and modalities that may be available to MSEDCL and its demand-supply position, the proposed retirement plan of the old Units and macro-level developments which could have adverse financial implications before pursuing them further.

In view of the above, the Commission has initiated a suo moto proceeding on the determination of Capital Cost and Final Tariff for New Units and cancellation of certain other upcoming Units and their consequent removal from the PPA’s.

In this regard the first hearing was conducted on 20th April 2017. The submission made by Prayas in this context is attached below.

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