Hyderabad: Metro Rail moves high court after rise in power tariffs

Hyderabad: In a petition filed by L&T metro rail, the Telangana high court directed Discom’s counsel to obtain instructions by Tuesday. The high court’s direction is in association with the power tax set for operating the metro.

Metro Rail filed an appeal with the high court after the Telangana State Electricity Regulatory Commission (TSERC) upheld the increase in Metro Rail’s power taxation.

According to the New Indian Express, the petitioner’s counsel informed the court that the petitioner had submitted a representation to the Telangana Energy Department requesting that the tariff be fixed on a “cost to serve” basis in accordance with clause 6.4 of the Concession Agreement.

After considering the petitioner’s representation, the government informed the TSERC that it had granted permission to TS-SPDCL to create a separate category for the Hyderabad Metro Rail System and fix the taxation in accordance with the settlement agreement.

According to the council, if the petitioner is burdened with a tariff increase, the high costs of servicing the project will have a direct impact on the passengers. Following the hearing, the division bench directed TSERC counsel to obtain instructions by Tuesday.