Udit vani, Jamshedpur: In a significant regulatory decision, the Jharkhand State Electricity Regulatory Commission (JSERC) has rejected Tata Power Company Limited’s (TPCL) proposal to invest ₹133.89 crore in its Jamshedpur-based thermal power plant.
The proposal was aimed at renovation and modernization of Unit-2 and Unit-3. However, the Commission declined approval, citing the company’s failure to submit a mandatory Residual Life Assessment (RLA) report.
Ageing Units Under Scrutiny
As per established norms, coal-based thermal power plants have a standard operational life of 25 years. Tata Power’s Unit-2 and Unit-3, each with a capacity of 120 MW, have already crossed this limit.
The Commission noted that without a proper technical evaluation of the plant’s remaining life, approving such a large capital investment would not be justified.
Clear Message on Consumer Protection
JSERC made it clear that the absence of an RLA report means the proposed investment cannot be included in electricity tariffs. In simple terms, the company will not be allowed to recover this cost from consumers.
This decision ensures that electricity users in Jamshedpur are not burdened with additional charges due to unverified investments.
Efficiency Norms Tightened
Along with rejecting the investment plan, the Commission also tightened norms related to the plant’s internal power consumption (auxiliary consumption).
• The company had claimed 11% consumption due to the installation of Flue Gas Desulfurization (FGD) systems.
• JSERC reduced the allowable limit to 10%.
Any consumption beyond this approved limit will now have to be borne by the company itself and cannot be passed on to consumers.
Focus on Accountability
The Commission’s order highlights the importance of technical validation and accountability in power sector investments. It also reinforces the regulator’s intent to balance infrastructure needs with consumer interests.
About Tata Power’s Jamshedpur Plant
Tata Power’s thermal power plant in Jamshedpur remains a key source of electricity for both industrial and residential consumers in the city. Commissioned in 1996, the plant has been operational for nearly three decades and currently has a total installed capacity of 547.5 MW, operating through five units. Over the years, however, ageing infrastructure combined with evolving environmental norms and efficiency standards has brought the plant under increasing regulatory and technical scrutiny.
