Southern States turn the heat on RInfra arm

Southern States have stepped up the heat on a Reliance Power Transmission arm, which is to execute a key transmission link connecting the region with the rest of the country.

Tamil Nadu, Kerala, Karnataka and Puducherry have unanimously resolved that delay in clearances, attributed as the key reason by the Reliance Power Transmission arm for serving a notice to them, cannot be considered a force majeure event. After a meeting in Chennai, the key beneficiaries have now petitioned the Power Ministry to intervene in the matter and expedite the link.

The meeting was called by the lead beneficiary, Tamil Nadu, in response to the notice served by the Reliance Power Transmission arm. The proposed Talcher-Gazuwaka 400 kV DC (double circuit) line is an important transmission project that will enable the Southern region to be synchronously connected to the rest of the country.

Talcher-II Transmission Company, the Reliance Power Transmission arm that bagged the project under a tariff-based competitive bidding route, had in June served a force majeure notice to electricity distribution utilities in Tamil Nadu, Andhra Pradesh, Karnataka, Kerala and Orissa citing “unforeseen delays” in clearances. Reliance Power Transmission is a subsidiary of Reliance Infrastructure.

“The issue of delay of grant of consents, clearances and permits by the Ministry of Power cannot be taken under force majeure, as claimed by the transmission service provider,” an official from the Tamil Nadu Government said, citing the resolution passed by the States at the July 27 meeting. Since it is an important link, the Southern region beneficiaries have said the link should be completed without slippages. The Tamil Nadu Transmission Corporation Ltd (Tantransco) has written to the Power Ministry citing the outcome of the meeting of the beneficiary States.

The force majeure clause releases a party to a contract from liability if some unforeseen event beyond its control prevents it from performing its obligations under the pact. In its notice, the developer has cited ‘force majeure' and the ‘change in law clause' of the transmission service agreement (TSA), specifically referring to “unforeseen and undue” delays in the grant of ‘164 Approval'.

Section 164 of the Electricity Act, 2003, pertains to the requisite permission for the placing of electric lines in accordance with the provisions of the Indian Telegraph Act, 1885.’