OERC directs Reliance Infra Limited to pay Rs 4,235 crore to Gridco as compensation

Bhubaneswar: In what can be considered as a great blow to the Reliance Infra Limited (RIL), the Odisha Electricity Regulatory Commission (OERC) directed the RIL to pay around Rs 4,235 crore to Grid Corporation of Odisha Limited (GRIDCO) as compensation for allegedly violating the terms of the agreement.

It is to be noted here that the Odisha government in 1999 had privatized the electricity supply to the people. The Reliance Infra Limited (RIL) was given the charge for the same.

As per the agreement, the GRIDCO used to procure electricity from generating companies and supply it to the consumers through RIL-owned Western Electricity Supply Utility of Odisha Ltd (WESCO) and Southern Electricity Supply Utility of Odisha Ltd (SOUTCO) and Deloitte has the mandate for North Eastern Electricity Supply Company of Odisha Ltd (NESCO). However, RIL violated the licence conditions, shareholder agreements, Electricity Act and Regulation due to which the consumers did not get the electricity as per the pact.

This apart, the RIL did not take care for the maintenance and repair of the electricity appliances. Finally, GRIDCO approached the OERC over the issue and had cancelled the agreement. The Electricity Regulatory Commission also cancelled the licenses of WESCO, SOUTCO and NESCO.

The GRIDCO had prayed before the OERC that RIL had not given it the due amount to the tune of Rs 4,235 crore till 2015. This includes Rs 1789 crore of WESCO, Rs 1443 crore of NESCO and Rs 1001 crore of SOUTHCO.

However, while conducting a hearing on this today, the OERC asked the RIL to pay around Rs 4,235 crore to GRIDCO.

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