ORDER

The present Petition has been filed by DVC (“Petitioner/DVC”) under Regulation 9 (4) of the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2024 ("Tariff Regulations 2024”) seeking condonation of delay of Twenty Four (24) months in declaring commercial operation date of tubed coal mines limited and approval of input price of coal supplied from tubed open cast coal mine for the period from date of commercial operation i.e., 01.04.2024 to 31.03.2029.

Background

1. The Petitioner, i.e., Damodar Valley Corporation, is a Generating Company within the meaning of Section 2(28) of the Electricity Act, 2003 (“Act”), and the Petitioner is also a Corporation constituted under the Damodar Valley Corporation Act (Act No. XIV of 1948) notified by Parliament. The Petitioner has power stations/ projects across the Damodar River valley in the States of Jharkhand & West Bengal and currently owns coal-fired thermal generating stations with an aggregate capacity of approximately 7090 MW.

2. The integrated coal mines have been allocated to the Petitioner for specified end-use generating stations of its own, whose tariff is determined by this Commission under Section 62 of the Act. Tubed Open Cast Coal Mine is one such coal mine located in Latehar District of Jharkhand (“Tubed Open Cast Coal Mine”) which has been allocated to DVC. It is pertinent to note that the Coal from the Coal Mine shall be supplied to the following generating stations of DVC:-

3. In terms of Regulation 5 of the Tariff Regulations 2024 and the Coal Mining Agreement, the scheduled COD of the Tubed Open Cast Coal Mine was 01.04.2022 in FY 2022-23. However, the mine touched coal on 23.01.2023, and the COD of the Coal Mine was declared on 01.04.2024. Notably, the COD of the Coal Mine was delayed due to various reasons, including force majeure events beyond the control of the Petitioner.

4. The Petitioner has been allocated integrated coal mines (both captive mines and basket mines) for specified end-use generating stations. Tubed Open Cast Coal Mine, situated in Latehar District of Jharkhand, is one such coal mine (captive type) which has been allocated to the Petitioner for use in its end-use generating stations, Mejia Thermal Power Station (MTPS) Unit-7 and 8 (2x500 MW = 1000 MW) and Chandrapura Thermal Power Station (CTPS) Unit-8 (1x250 MW = 250 MW). The tubed open-cast coal mine declared COD on 1.4.2024, and the peak rated capacity of 6 MTPA is expected to be achieved in the financial year 2024-25, as per the Mining Plan approved on 12.10.2009.

5. The mine was envisaged to be developed and operated under Mine Developer cum Operator (MDO) mode, and on 27.03.2018, the Petitioner and DEVELECTO MINING LIMITED entered into the Coal Mining Agreement for the purpose of development and operation of the Tubed Open Cast Coal Mine Project.

6. The tariff for the sale of electricity generated at the end-use generating stations of the Petitioner is regulated by the Commission in terms of Section 79(1)(a) of the Electricity Act, 2003 (the Act). The coal extracted from the Tubed Open-cast coal mine is used to generate electricity for supply to the Respondents from the end-use generating stations, MTPS Units 7 and 8 (2x5000 MW = 1000 MW) and CTPS Unit 8 (1x250 MW = 250 MW) of the Petitioner.

7. The Commission has notified the 2024 Tariff Regulations, which came into force on 1.4.2024, which stipulated the terms and conditions for the determination of the input price of coal supplied from integrated Mines to the linked generating stations for the Tariff period 2024-29.

8. The mining plan of the tubed open-cast coal mine was approved by the competent authority on 12.10.2009, and the salient features