Indian Railways to Pay Rs.27.35 Crores Plus Surcharge to TPC-D

TPC-D had filed a petition against Indian Railways on non-compliance of the Mid-Term Review Order of MSEDCL

The Indian Railways will have to pay more than Rs.27.35 crores to Tata Power Company Limited (Distribution) (TPC-D). The Maharashtra Electricity Regulatory Commission (MERC) has issued an order directing the Indian Railways to pay the outstanding stand-by charges of Rs 27.35 crores along with delay payment interest of 1.25% per month computed from January 2019 till date of payment to TPC-D.

TPC-D had petitioned the MERC stating that Indian Railways had not complied with the commission’s previous order regarding payment of stand-by charges. TPC-D had also prayed that the MERC take appropriate action and direct Indian Railways to pay the sum of Rs. 31.37 crores towards refund of stand-by charges for the period December 2015 to March 31, 2018 (Rs.27.35 crores – stand-by charges along with + Rs.0.34 crores delayed payment charges + Rs.3.67 crores interest) and also to pay further interest till payment of this sum.

Indian Railways submitted that it had approached the APTEL regarding the issue, but as the APTEL had not put a stay on MERC’s previous order, it will be paying the stand-by charges along with surcharge to TPC-D.

While going through the submissions made by all concerned parties, the MERC found that the Indian Railways has accepted to make the payment of the amount along with the surcharge and hence did not find it necessary to initiate action regarding non-compliance of its previous order.

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Saumy Prateek

Saumy Prateek

Saumy has been a writer with Reuters, Mercom India and Rystad Energy.

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