In Brief
A thermal power plant developer (NPL) secured a power purchase contract through competitive bidding to supply electricity to a state utility. The utility (PSPCL) later deducted components of the monthly tariff, claiming they were not covered under the energy charge formula. The Supreme Court held that the formula for Monthly Energy Charges covers three components: purchasing, transporting, and unloading coal. Since MoEF mandated coal washing due to travel distance, all washing and transportation costs to the project site (including road transport when railways were unavailable) must be reimbursed. The Calorific Value must be measured at the project site, not the mine. The appeal was partly allowed, directing PSPCL to pay the developer coal washing costs and full transportation costs within three months.", "type": "string"}
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