HC stays MGVCL action as GAIL flags gas supply risk

Ahmedabad: The Gujarat high court has stayed the state-owned power distribution company, Madhya Gujarat Vij Co Ltd (MGVCL), from disconnecting power supply to the GAIL India Ltd Vadodara plant, citing submissions that any such action could disrupt natural gas supply to north India.Justice Nirzar Desai directed MGVCL “not to disconnect the electricity supply which is already being given to the petitioner company for a period of two weeks from today and the petitioner company shall file statutory appeal within the aforesaid time”.The court intervened after GAIL’s advocate Akshat Khare submitted that GAIL supplies natural gas to north India from its Vadodara plant and a power cut would affect operations and disrupt gas supply. The high court granted interim relief even as GAIL withdrew its petition to file an appeal before the appellate authority against MGVCL’s decision.As per case details, GAIL has operated a solar power plant since 2018 with approvals from MGVCL and Gujarat Energy Development Agency (GEDA). It later sought to increase capacity by 770 kW and received approvals. In March, MGVCL objected that the plant was operating without a metering agreement, assessed losses, and sought recovery of nearly Rs 3 crore from GAIL.On June 1, MGVCL issued a notice warning of disconnection if the amount was not paid. GAIL moved the high court, arguing that a metering agreement was not required since the solar power generated was consumed at its Vadodara plant and not supplied to the grid.During the hearing, GAIL said it would prefer a statutory appeal under section 127 of the Indian Electricity Act. The court directed the appellate authority “to consider the petitioner’s appeal on merits without raising the issue of delay, if the appeal is preferred within a period of two weeks from today.”