The Supreme Court has reserved its verdict regarding a plea by the Municipal Corporation of Delhi (MCD), which challenges an Appellate Tribunal for Electricity decision. The tribunal had previously ruled that the MCD cannot set electricity tariffs for its proposed waste-to-energy power plant in Narela, Delhi.
During the proceedings, a bench consisting of Justices B R Gavai and K V Viswanathan heard arguments from the MCD’s legal representatives, who argued for the quashing of the Appellate Tribunal’s August 31, 2023, order. The MCD’s legal team contended that the civic body should be permitted to establish and operate the power plant, including setting its own power tariffs.
The Appellate Tribunal had determined that the MCD, not being a power generating company, does not have the authority under section 63 of the Electricity Act to set tariffs for electricity that would be generated at the waste-to-energy facility. This section typically allows tariff determination through a transparent process of bidding for power generating companies, which the MCD does not qualify as.
The decision to reserve the order came after extensive discussions on the roles and limitations of municipal corporations in the power sector, particularly in the context of emerging green technologies like waste-to-energy plants. These facilities are crucial for managing urban waste and producing energy, aligning with broader environmental sustainability goals.
