Chhattisgarh SEB told to give power to Monnet Ispat
, ET Bureau|
Updated: Oct 09, 2017, 11.59 PM IST
MUMBAI: The National Company law Tribunal (NCLT), Mumbai, has ruled in favour of the debt-laden Monnet Ispat and Energy, directing the Chhattisgarh State Electricity Board to continue with the existing power supply arrangement to the steelmaker.
The electricity board had suspended the arrangement in view of the company’s poor financial situation.
But the Mumbai bench of NCLT on Monday passed an interim order in favour of Monnet Ispat and has called the parties for further hearing on November 6.
The steel company had an arrangement with the state transmission board of Chhattisgarh since November last year which allowed Monnet to send surplus power from its captive power plant in Raigarh to its plant in Raipur for optimum utilisation of the power.
The arrangement has also helped the company to save on power costs.
But monthly permissions had to be sought to continue with this arrangement. From the time the company has put in the corporate resolution process in July, the court-appointed resolution professional wrote to the transmission board stating “that a moratorium had been declared and that open access will constitute an essential service”, and had requested not to suspend it during the period of the moratorium.
But while the access was provided through August and September, the permission for October was granted only till October 10, which should have continued till the end of the month.
The counsel for Monnet argued that the transmission board is trying to “arm-twist” the company into buying electricity from the state as it could have become wary of the company’s financial credibility.
The electricity board had suspended the arrangement in view of the company’s poor financial situation.
But the Mumbai bench of NCLT on Monday passed an interim order in favour of Monnet Ispat and has called the parties for further hearing on November 6.
The steel company had an arrangement with the state transmission board of Chhattisgarh since November last year which allowed Monnet to send surplus power from its captive power plant in Raigarh to its plant in Raipur for optimum utilisation of the power.
The arrangement has also helped the company to save on power costs.
But monthly permissions had to be sought to continue with this arrangement. From the time the company has put in the corporate resolution process in July, the court-appointed resolution professional wrote to the transmission board stating “that a moratorium had been declared and that open access will constitute an essential service”, and had requested not to suspend it during the period of the moratorium.
But while the access was provided through August and September, the permission for October was granted only till October 10, which should have continued till the end of the month.
The counsel for Monnet argued that the transmission board is trying to “arm-twist” the company into buying electricity from the state as it could have become wary of the company’s financial credibility.
