Damodar Valley Power Consumers’ Association & Ors vs West Bengal Electricity Regulatory Commission & Anr on 11 August 2026

1. Damodar Valley Power Consumers’ Association Through its Authorised Signatory, Mr. Rajesh K. Shah Ideal Centre, 4th Floor 9 AJC Bose Road, Kolkata- 700 017.

2. AIC Iron Industries Pvt Ltd Through Authorised Signatory, Mr. Dinesh Adukia, Regd. Office:-25, Ganesh Chandra Avenue, 4th Floor, Kolkata-700013.

3. Alishan Steels Private Limited Through Authorised Signatory, Mr. Uttam Sarkar Martin Burn House, 1, R.N. Mukherjee Road, 2nd Floor, Room No. 210, Kolkata-700001.

4. BDG Metal & Power Limited Through Authorised Signatory, Mr. Saurabh Shekhar 5th Floor, HMP House, Kolkata-700001.

5. Captain Steel India Limited Through Authorised Signatory, Mr. Ramesh Kumar Jhunjhunwala, Director Read. Office:- 10th Floor, Flat 101N, 21A, Shakespeare Sarani, Kolkata-700017.

6. City Alloys Pvt. Ltd. Through Authorised Signatory, Mr. Tushar Mitra Regd. Office :- Hanuman Charai, P.O. Barakar- 713324. Dist. Paschim Bardhaman (W.B).

7. Expandable Enterprises (P) Ltd. Through Authorised Signatory, Mr. Uttam Sarkar 51 Nalini Seth Road, 2nd Floor, Room No. 01, Kolkata-700007.

8. Gagan Ferro Tech Limited Through Authorised Signatory, Mr. Vinay kumar Agarwal, Director Reg. Office: 113/1B, C.R. Avenue, 7th Floor, Room No. 7C, Kolkata-700073.

9. Jagdamba Ispat Pvt. Ltd. Through Authorised Signatory, Mr. Sandeep Murarka, Director Regd. Office :- 1C, Jorabagan Street, 1st Floor, Room No. A, Kolkata- 700006, West Bengal.

10. Jai Balaji Industries Limited (Consumer No. 440195 ) Through Authorised Signatory, Mr. Roshan Mallick, Regd. Office:- 5, Bentinck Street, 1st Floor, Kolkata-700001.

11. Jai Balaji Industries Limited (Consumer No. 440225) Through Authorised Signatory, Mr. Roshan Mallick, Assistant Manager- Account, Regd. Office:- 5, Bentinck Street, 1st Floor, Kolkata-700001.

12. Lalwani Ferro Alloys Ltd Through Authorised Signatory, Mr. Sandeep Lalwani, Regd. Office :- Om Tower, 32, Jawaharlal Nehru Road, 2nd Floor, Suite No. 205, Kolkata- 700071.

13. Ma Chandi Durga Cements Ltd Through Authorised Signatory, Mr. Kuldip Kumar Kedia, Regd. Office : Bamunara Industrial Area, P.O. Bamunara, P.S. Kanaksha, G.P., Gopalpur, Durgapur — 713212 District — Paschim Bardhaman, West Bengal.

14. Maan Concast Pvt. Ltd.

Through Authorised Signatory, Mr. Amit Goel, Director Reg. Office:-58/1, Sarat Bose Road, Kolkata-700025.

15. Maan Steel & Power Ltd Through Authorised Signatory. Mr. Shyam Sunder Agarwal, Reg. Office:-58/1, Sarat Bose Road, Kolkata-700025.

16. Mackeil Ispat & Forgings Ltd. Through Authorized Signatory, Mr. Debkumar Som Siddha Weston, 2nd floor, Room No. 203, 9, Weston Street, Kolkata-700 013.

17. Maithan Alloys Ltd. Through Authorised Signatory, Mr. Sudhanshu Agarwalla, President & Financial Officer, Regd. Office:- Ideal Centre, 4th Floor, 9, A.J.C. Bose Road, Kolkata- 700017.

18. Maithan Steel & Power Ltd Through Authorised Signatory, Mr. Rameshwar Sah, Regd. Office :- 9, A.J.C. Bose Road, Ideal Centre, 6th Floor, Kolkata — 700017.

19. Mark Steels Ltd. Through Authorised Signatory, Mr. Umesh Kumar Jhunjhunwala, Director Regd. Office:- 8B, Bikaner Building, 2nd Floor, Lal Bazar Street, Kolkata-700001.

20. Metsil Exports Ltd Through Authorised Signatory, Mr. Rintu Bhattacharjee Regd. Office :- 8/1A, Middleton Row, 3rd Floor, Kolkata- 700071.

21. N N Ispat Pvt Ltd Through Authorised Signatory, Mr. Dinesh Adukia, Director. Regd. Office:-25, Ganesh Chandra Avenue, 4th Floor, Kolkata-700013.

22. Neo Metaliks Ltd. Through Authorised Signatory, Mr. Akhilesh Narayan Shukla, Regd. Office:- Park Plaza, 71 Park Street, 6th Floor, 6F, North Block. Kolkata- 700016.

23. RAIC Integrated Sponge & Power Pvt Ltd Through Authorised Signatory, Mr. Dinesh Adukia, Director, Regd. Office:-25, Ganesh Chandra Avenue, 4th Floor, Kolkata-700013.

24. Rattan Ispat Pvt. Ltd. Through Authorised Signatory, Mr. Gautam Agarwal Regd. Office :- 6 Lyons Range, Unit 4 & 5, 3rd Floor, Kolkata — 700001.

25. Royal Touch Fablon Pvt Ltd- Through Authorised Signatory, Mr. Vikash Kandoi. 16, Strand Road, 12th Floor, Unit No. N1212, Kolkata- 700001.

26. Pawan Putra Steel Company Through Authorised Signatory, Shri Vikash Kedia, 1- B. L. Kedia Road, Post- Asansol Dist- Paschim Bardhaman, West Bengal, Pin- 713301.

27. Shree Ambey Ispat Pvt. Ltd Through Authorised Signatory. Shri Prateek Agarwal. Regd. Office :- Room No. 90, Stephen House, 4 BBD Bagh East, Kolkata- 700001, West Bengal.

28. Super Iron Foundry Ltd Through Authorised Signatory, Mr. Lakshmi Nivas Pandey, Regd. Office :- C/O: Chandra Bhushan Pandey, 12, Pretoria Street, Aspiration Vintage, 1st floor, `1B' Kolkata-700071.

29. Surya Alloy Industries Ltd. (Consumer No. 440214) Through Authorised Signatory, Shri Ashish Rungta, Regd. Office :- 1/1, Cama Street, 3rd Floor,

Kolkata- 700016.

30. Surya Alloy Industries Ltd. (Consumer No. 440283) Through Authorised Signatory, Shri Ashish Rungta Regd. Office :- 1/1, Cama Street, 3rd Floor, Kolkata- 700016.

31. Ujjwal Mineral And Steels Pvt. Ltd. Through Authorised Signatory, Mr. Ujjwal Kamalia, Nakrajoria, P.O.- Salanpur, Distt.- Paschim Bardhaman, West Bengal 713357.

32. Vision Sponge Iron Private Ltd Through Authorised Signatory, Mr. Pawan Kumar Bagla, Regd. Office :- "ANANDLOK", 227 A.J.C. Bose Road, Block-A, 3rd Floor, Kolkata- 700020.

…Appellant(s)

Vs.

1. West Bengal Electricity Regulatory Commission Through Secretary Plot No: AH/5 (2nd & 4th Floor), Premises No : MAR 16-1111, Action Area 1A, Newtown, Rajarhat, 700163, Kolkata.

2. Damodar Valley Corporation Through Member Secretary, DVC Towers, VIP Road Kolkata - 700 054.

…Respondent(s)

Counsel for the Appellant(s) : Mr. Rajiv Yadav

Counsel for the Respondent(s) : Mr. C. K. Rai Ms. Anuradha Roy Mr. Vinay Kumar Gupta for R-1

Mr. Shri Venkatesh Mr. Suhael Buttan Mr. Nihal Bhardwaj

Ms. Surbhi Kapoor Mr. Nikunj Bhatnagar Mr. Manav Batia Mr. Siddharth Nigotia Mr. Akash Lamba Mr. Aniket Kanhaua Ms. Devishi Gupta Mr. Shreyshth Ramesh Sharma Ms. Kanika Chugh Mr. Abhishek Nangia Ms. Tanishka Khatana Mr. Kunal Veer Chopra Ms. Drishti Rathi Mr. Manu Tiwari Mr. Aashwyn Singh Ms. Indu Uttara Mr. Ashutosh Kumar Srivastava Ms. Priya Dhankar Mr. Vineet Kumar Mr. Punyam Bhutani Mr. Vedant Choudhary Mr. Adarsh Singh Mr. Mohit Mansharamani Mr. Harsh Vardhan Ms. Ananya Dutta for R-2

JUDGEMENT

PER HON’BLE MR. AJAY TALEGAONKAR, TECHNICAL MEMBER

1. The present Appeal has been filed by the Appellant Damodar Valley Power Consumers’ Association (“DVPCA”) and its members challenging the Impugned Order dated 24.03.2025 passed by the West Bengal Electricity Regulatory Commission (“WBERC”/ “Respondent No. 1”/ “State Commission”) in Case No. APR(R)-33/23-24.

2. In this appeal, one of the issues being raised by the Appellant- DVPCA is related to interest on differential Annual Fixed Charges (AFC) for the period 2019-

20. The essential facts of the case on the issue of interest on differential AFC are similar to that in Appeal No. 15 of 2026, except that the controversy is for a differeny year. The principal question that arose for consideration in Appeal No. 15 of 2026, as also in the present appeal, is whether the methodology adopted by the WBERC for determing the interest on differential AFC was correct.

3. In the Appeal No. 15 of 2026 also, other issues were raised in the appeal. However, learned counsels for the parties had agreed that since submissions which were made on the issue of interest on differential AFC during the course of hearing on the interim application were similar which would be made at the time of final disposal of the appeal on that issue; and had requested that the appeal may be disposed of with the liberty to approach this Tribunal with remaining issues, if so desired by the Appellant. Accordingly, we had procedded to deal with that appeal and the judgement was delivered on 02.07.2026. In the said judgement after a detailed analysis, this Tribunal had upheld the order of WBERC which was impugned in that appeal.

4. During the hearing held on 21.07.2026 in the present case, Mr. Shri Venkatesh, learned counsel for the DVC submitted that one of the issues raised in the appeal relating to interest on differential AFC was also involved in Appeal No. 15 of 2026 which has been disposed of by this Tribunal vide judgment dated 02.07.2026 and therefore, this appeal may also be decided in terms of the said previous judgment giving liberty to the Appellant to raise the remaining issues by way of a fresh appeal.

5. Responding to this, Mr. Rajiv Yadav, learned counsel for the Appellant submitted that even though the Appellant may not be in agreement with the final conclusion of this Tribunal in the said Appeal No. 15 of 2026, yet, in view of the

observations of this Tribunal in paragraph 37 of the said judgment, this Tribunal may consider if the instant appeal can be decided in the light of the observations and conclusions arrived at in the said judgment. To a pointed query as to whether the findings in the judgment dated 02.07.2026 in Appeal No. 15 of 2026 on the issue of interest on differential AFC is applicable to this appeal, the learned counsel avoided a direct or specific answer. He submitted that he leaves it to the wisdom of this Tribunal to decide as to whether the judgment in Appeal No. 15 of 2026 is applicable to the instant appeal and the instant appeal may be decided accordingly.

6. While we have no quarrel with the submission of the Appellant that it is not in agreement with the final conclusion reached in the judgment in Appeal No. 15 of 2026, we consider it appropriate to briefly note the circumstances in which the concluding part of paragraph 37 of the judgment dated 02.07.2026 came to be incorporated, having regard to the submissions advanced by the learned counsel for the Appellant. We find it appropriate to first extract the said paragraph here:

“37. We have already concluded under Issue 1 that the AFC order had not attained finality. In regard to contention of DVC that the Appellants have covered these issues in the appeals selectively only for the years when revised AFC had reduced from original AFC, during the hearing, Ld. Counsel for the Appellants Mr. Rajiv Yadav had clarified that in-principle they do not agree with the methodology of truing up based on empirical formula for all the years, but had no ground to object to it in the years in which they had gained financially due to such adjustment clear that the application of the “Empirical formula” has benefitted consumers in some years and to the DVC in other years, and therefore, the apprehension of DVPCA is

unfounded that this formula was devised after realizing that the trued-up AFC was lower than the AFC considered in the original tariff order. Whatever conclusion we arrive at in this Appeal, may get applied consistently in all those years where the relevant orders have been challenged before us in the form of Appeals.”

7. It may be seen that the concluding sentence of paragraph 37 was made in the context of the submissions recorded in the earlier part of the said paragraph. There were multiple appeals inter-alia concerning the issue of interest on differential AFC, albeit pertaining to different periods. During certain years, however, the Appellants were not adversely affected, as the truing-up exercise resulted in a reduction in the interest on differential AFC. Ordinarily, there would have been no necessity to specifically include the concluding sentence in the judgment, since, for the years in which the interest on differential AFC had increased, the issue would have arisen in the relevant appeals and, consistent with the precedent, the same conclusion would naturally have followed. However, the peculiar factual and procedural situation, as is evident from the rival submissions of the Appellants and the Respondents, necessitated the inclusion of the concluding sentence. This was because, for the years in which the interest on differential AFC had reduced, the issue did not arise in the appeals concerned, the Appellants having no grievance in those years. In the absence of such an express clarification, the benefit of parity flowing from the earlier decision would not have automatically extended to those years.

8. Based on the foregoing discussion, in the present case also, we uphold the methodology adoted by the WBERC in the Impugned Order determining interest on differential AFC. In so far as other issues are concerned, the Appellants are given liberty to agitate those issues by way of fresh appeal.

ORDER

For the reasons recorded in the Judgement dated 02.07.2026 in Appeal No. 15 of 2026, the present Appeal No. 18 of 2026, filed by the Appellants challenging the Impugned Order dated 24.03.2025 passed by the West Bengal Electricity Regulatory Commission in Case No. APR(R)-33/23-24 is hereby dismissed. The Impugned Order dated 24.03.2025 passed by the West Bengal Electricity Regulatory Commission to the extent considered herein is affirmed.

The Captioned Appeal and pending IAs, if any, are disposed of in the above terms.

PRONOUNCED IN THE OPEN COURT ON THIS 11th DAY OF AUGUST, 2026.

(Ajay Talegaonkar) Technical Member

(Virender Bhat) Judicial Member

REPORTABLE / NON-REPORTABLE kns/mg/mkj/kks