Jamshedpur: In a significant regulatory decision, the Jharkhand State Electricity Regulatory Commission has rejected a Rs 133.89 crore investment proposal by Tata Power Company Limited for its thermal power plant in Jamshedpur.
The proposal aimed at renovation and modernisation of Unit-2 and Unit-3 of the plant. However, the Commission denied approval after the company failed to submit the mandatory Residual Life Assessment (RLA) report — a key requirement to evaluate the remaining operational life of ageing power units.
As per regulatory norms, coal-based thermal plants typically have a lifespan of about 25 years. Both Unit-2 and Unit-3, each with a capacity of 120 MW, have already crossed this threshold. JSERC stressed that without a proper technical assessment of the plant’s remaining life, approving such a large investment would not be justified.
The Commission also clarified that, in the absence of the RLA report, the proposed expenditure cannot be included in electricity tariffs. This means the company cannot pass the cost burden on to consumers, protecting power users in Jamshedpur from potential tariff hikes linked to unverified investments.
Additionally, JSERC tightened norms on auxiliary power consumption. While Tata Power sought approval for 11 per cent consumption citing installation of Flue Gas Desulfurization (FGD) systems, the regulator capped the permissible limit at 10 per cent. Any consumption beyond this limit will now have to be absorbed by the company rather than recovered from consumers.
The order highlights the regulator’s emphasis on accountability and technical validation in infrastructure investments, while balancing sector development with consumer protection.
Tata Power’s Jamshedpur plant, commissioned in 1996, remains a key electricity source for industrial and residential users in the city. With a total installed capacity of 547.5 MW across five units, the facility has been operating for nearly three decades, but ageing infrastructure and evolving environmental norms have brought it under increasing regulatory scrutiny.