JUDGMENT

RAKESH NATH, TEHNICAL MEMBER This Appeal has been filed by Raj West Power Ltd.

and Barmer Lignite Mining Company Limited against the orders dated 5.1.2012 read with the order dated 17.8.2011 passed by the Rajasthan Electricity Regulatory Commission (“State Commission”) dealing with determination of transfer price of lignite for the generating station of the Appellant no. 1.

2. The Appellant no. 1 is a generating company.

The Appellant no. 2 is a Joint Venture Company of the Appellant no. 1 and the Rajasthan State Mines and Minerals Ltd. (“RSMML”), a state owned Mining Company and the Respondent no. 6 herein. The State Commission is the Respondent no. 1. The Respondent nos. 2 to 4 are the distribution licensees and the Respondent no. 5 is the State Government. The 7th Respondent is Rajasthan Rajya Vidyut Utpadan Nigam, a generating company. The Respondent no. 6 (“RSMML”) is a state owned company engaged in the business of mining of coal, lignite and other minerals and is majority shareholder (51%) of the Joint Venture company (Appellant no.2).

3. The brief facts of the case are as under:

3.1 Raj West Power Ltd. (Appellant no.1), hereinafter referred to as “Raj West”, is in the