POWER GRID CORPORATION OF INDIA versus TAMIL NADU GENERATION AND DISTRIBUTION CO. LTD. & ORS. ETC. ETC

POWER GRID CORPORATION OF INDIA versus TAMIL NADU GENERATION AND DISTRIBUTION CO. LTD. & ORS. ETC. ETC

There is no rule, regulation, statute, or precedent requiring apportionment of FERV in a debt-equity ratio; Regulation 1.13(a) only provides methodology for calculation, not apportionment; thus, there is no substantial question of law warranting interference.

Parties
Appellant: Power Grid Corporation of India; Respondents: Tamil Nadu Generation and Distribution Co. Ltd. & Ors.
Jurisdiction
India
Judgment Date
09 May 2019
Procedural Posture
Civil Appeal / Appeal From Appellate Tribunal for Electricity and CERC Orders
Outcome
Appeal dismissed.
Legal Topics
Foreign Exchange Rate Variation, Tariff, Debt Equity Apportionment
Electricity Law Foreign Exchange Rate Variation Tariff Debt Equity Apportionment

Case Brief

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Parties

Power Grid Corporation of India

Appellant

Tamil Nadu Generation and Distribution Co. Ltd. & Ors.

Respondents

Procedural Posture

Civil Appeal / Appeal From Appellate Tribunal for Electricity and CERC Orders

Legal Issues

  1. 1 Whether FERV should be apportioned between debt and equity after calculation and capitalization
  2. 2 Whether the methodology for FERV apportionment is supported by law or regulation

Ratio Decidendi

There is no rule, regulation, statute, or precedent requiring apportionment of FERV in a debt-equity ratio; Regulation 1.13(a) only provides methodology for calculation, not apportionment; thus, there is no substantial question of law warranting interference.

Court Disposition

Appeal dismissed.

Orders

  • No order as to costs.
  • FERV is not required to be apportioned between debt and equity under applicable law or regulations.