East Coast Railways moves power tribunal over distribution license

The Odisha Electricity Regulatory Commission declined to recognise ECoR as deemed distribution licensee under any provision of the Railway Act, 1989 and Electricity Act, 2003.

Published: 02nd July 2020 09:30 AM  |   Last Updated: 02nd July 2020 09:30 AM   |  A+A-

Indian trains, Indian railways

For representational purposes (File Photo |EPS)

Express News Service

BHUBANESWAR: The East Coast Railways (ECoR) has moved the Appellate Tribunal for Electricity (ATE) challenging the order of Odisha Electricity Regulatory Commission (OERC) which rejected its demand for deemed distribution license.

Disposing off the application of the State-owned Odisha Power Transmission Corporation Limited (OPTCL) on February 25, OERC declined to recognise ECoR as deemed distribution licensee under any provision of the Railway Act, 1989 and Electricity Act, 2003.

"We are not agreeable to declare Railways a ‘deemed distribution licensee’ either under the provisions of Railways Act, 1989 or under the Electricity Act, 2003," the OERC order said. The regulatory body comprising Chairperson UN Behera and Member SK Parhi further observed that the Ministry of Power has declared Railways a 'Deemed Licensee' not a 'Deemed Distribution Licensee'. They are 'deemed licensee' for the purpose of transmission and not for distribution. 

"They (Railways) can carry on transmission activity without obtaining a transmission license in addition to consuming power like a normal consumer due to their special and superior status under the Railways Act, 1989, in contrast to the provisions of the Electricity Act, 2003. As a consumer under Electricity Act, 2003, they have full right to avail open access under relevant Regulation made under Electricity Act, 2003," the order said.

The application of ECoR for deemed distribution license and open access were pending before the State-owned utilities OPTCL, GRIDCO and State Load Despatch Centre (SLDC) since 2016.

"Conferment of deemed distribution licensee status without license condition under Section 16 of the Electricity Act is not tenable. A license must contain rights and obligation of a licensee such as area of operation, nature of consumers, distribution or transmission voltage otherwise the license shall be incomplete and shall stand inoperative," the regulator said. 

The ECoR is currently operating with 29 railway traction sub-stations in  the State drawing power from the four distribution companies.


Disclaimer : We respect your thoughts and views! But we need to be judicious while moderating your comments. All the comments will be moderated by the editorial. Abstain from posting comments that are obscene, defamatory or inflammatory, and do not indulge in personal attacks. Try to avoid outside hyperlinks inside the comment. Help us delete comments that do not follow these guidelines.

The views expressed in comments published on are those of the comment writers alone. They do not represent the views or opinions of or its staff, nor do they represent the views or opinions of The New Indian Express Group, or any entity of, or affiliated with, The New Indian Express Group. reserves the right to take any or all comments down at any time.

flipboard facebook twitter whatsapp