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In response to a petition filed by Riga Sugar Company Limited in September 2013, the BERC has directed Bihar State Power Holding Company Limited (BSPHCL) to ensure execution of PPA and grant of grid connectivity at 33 kV to procure surplus power from the petitioner’s 3 MW bagasse-based cogeneration plant. With this, BERC held BSPHCL guilty of not complying with the commission’s order passed in March 2013 in response to Riga Sugar Company’s petition filed in October 2012. BSPHCL is required to submit a compliance report by July 15, 2014 to avoid penalty.
BSPHCL had denied execution of PPA on the grounds that Riga Sugar Company was found guilty of violating certain provisions of Bihar Excise Act, 1915 and Bihar Molasses (Control) Act, 1947. According to BERC, none of the state and central governments’ electricity polices and acts include violation of any provision of any other law by a generator as a disqualification criterion for entering into a PPA with a distribution licensee. The commission also stated that the sugar mill is free to generate power using bagasse in line with the Bihar Policy on New and Renewable Energy Sources, 2011 as long as the government does not suspend or cancel its license.
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