SC dismisses Tata's appeal against Rs 7000 crore transmission order to Adani

The court directed all the state commissions to frame guidelines on determination of tariffs as per Section 61 of the 2003 Act in accordance with the national policy.

New Delhi:The Supreme Court bench led by the Chief Justice of Inida, DY Chandrachud, dismissed the petition of Tata power and upheld the Maharashtra power regulator's decision to award Rs 7000 crore transmission contract on a nomination basis to Adani Electricity.

The bench also comprising of Justice Hima Kohli and Justice JB Pardiwala was considering whether a large infrastructure project can be awarded on nomination basis. "Electricity Act 2003 provides enough flexibility to state to have inter state power transmission. Provisions of 2003 Act does not provide one dominant method to determine tariff. Appropriate commission can not negate tariff arrived though bidding. Section 63 can not be meant to take precedence over section 62," stated the court.

" MERC has neither framed guidelines to determine tariff thus tariff to be determined by exercising general regulatory power...Electricity Act 2003 read with Maharashtra government GOM does not make tariff 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," it added.

The court directed all the state commissions to frame guidelines on determination of tariffs as per Section 61 of the 2003 Act in accordance with the national policy. "Benefits have to percolate to end customers," ordered the court.