Tribunal turns down L&T Power's plea to increase tariff.

The Appellate Tribunal for Electricity (Aptel) has rejected L&T Power Development's tariff increase plea for its 1,400-MW Nabha thermal project in Punjab. The company had said that cost escalation of Rs.51 crore, due to changes in the detailed engineering of the project, had necessitated the increase.

The appellant had submitted that the change was required as the project developer, Punjab State Power Corporation, had provided incorrect information in the bidding documents about the seismic sensitivity of the site. While the site fell in seismic zone IV, the documents erroneously mentioned it as zone II.

But the tribunal rejected L&T's contention, pointing out that the developer had issued a disclaimer on the accuracy of data provided in the documents and, so, the bidder should have made its own diligence.

But Aptel approved L&T's other plea seeking approval of Rs. 178-crore cost escalation caused by change in the work scope of railway siding of the project stipulated by the Railways.

FE