In Brief
NTPC Limited challenged the decision of the Appellate Tribunal for Electricity (APTEL) refusing to allow additional capitalisation claims totalling approximately ₹575 lakhs for communication network augmentation and wagon procurement at its Farakka Thermal Power Station. The Supreme Court held that APTEL failed to properly consider whether these works were necessary for efficient operation under the CERC Regulations 2004. The Court found the communication augmentation system prima facie necessary and noted that multiple affidavits regarding wagons had not been adequately evaluated. The judgment was set aside and remitted to APTEL for fresh consideration, with the guidance that retrospective tariff revisions should not burden consumers."
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