The Hindu : DMRC backs out on power proposal

Online edition of India's National Newspaper
Monday, Dec 09, 2002

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DMRC backs out on power proposal

By Lalit K. Jha

NEW DELHI DEC. 8. The Delhi Metro Rail Corporation (DMRC) seems to have backed out from its stand, which was supported by the Opposition BJP, to get power directly from the Transco for which it had applied for a licence to the Delhi Electricity Regulatory Commission (DERC).

The DMRC, it appears, has made up its mind to continue with the existing system of getting electricity from the distribution company at a much higher rate, as against the lower slab which it could have got from Transco. The first phase of the Metro will witness the inauguration of the Shahdara-Tis Hazari section by the Prime Minister, Atal Behari Vajpayee, on December 24.

Sources said DMRC has not come out with the mandatory public notice or submitted the draft licence to the DERC within the stipulated 14 days of the Regulatory Commission accepting its application since it wants to avoid unnecessary complications which may arise with the licence.

As per Section 20 (2)(a) of the Delhi Electricity Reforms Act, 2000, "any person applying for licence shall publish a notice of his application in such a manner, and with such particulars as may be prescribed by the DERC within 14 days after making such application.''

Highly placed sources said nothing in this regard has been done by DMRC so far and the 14 days period expired this week. "As per the provisions of the Reforms Act, the licence application is now bound to be rejected,'' said the official.

Had the licence application been accepted and DMRC been given the licence of a Discom, it could have saved crores of rupees every year, as electricity from the private BSES would cost at least Rs. 1 more per unit. In its application of August 27, the DMRC had argued that it needed a Discom licence and be given electricity directly from the Transmission company and not from Discom which were managed by the private BSES and Tata Power. The application was only accepted by the DERC around November 20 after it had sought several clarifications and a major hue and cry was raised by the BJP.

In its application, the DMRC had said it would purchase power from Transco for running the Metro and also sell it to the shops at Metro stations and commercial establishments along the Metro corridors. As per the DMRC projections, it would require between 250 and 300 million units per annum by the year 2005 when the first phase would become fully operational.

Sources said the DMRC was now not interested in getting a Discom licence as this would bring it under the purview of the Delhi Electricity Reforms Act 2000 and make it accountable to the DERC. As per the provisions of this Act and DERC regulations, it would have become mandatory for DMRC to file its annual revenue requirement (ARR), which is subsequently made public. "This was probably not acceptable to the top DMRC officials as they want to continue with their tradition of maintaining secrecy which they argue is the reason for their success,'' they said. The licence would also have given the DERC to interfere into DMRC matters, which also was not acceptable to them, they added.

It is to be noted here that the Leader of the Opposition, Jagdish Mukhi, in a series of press conference had alleged that the Delhi Transco Chairman, Jagdish Sagar, was helping BSES earn profits in crores. He had also accused the DERC of conniving with the private companies. Both the Delhi Transco and BSES had denied the charges. Prof Mukhi had supported DMRC demand that it be given cheaper power and a Discom licence.

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