According to a prevailing Delhi Electricity Regulatory Commission (DERC) guideline, “it is the land-owning agency’s responsibility to bear the entire cost of electrification in the case of a 66 KV grid,” a senior DERC official told Newsline.

The DDA believes that this clause is unfair and not in keeping with the way it functioned in the days of the erstwhile Delhi Vidyut Board — the state electricity board in the pre-privatisation era.

Seeking a resolution to the problem, the DDA has filed a case against the BSES.

The matter is now in the High Court. Before they divulge details of the case, the DDA officials are keen to state that their legal battle with the Discom is in no way hampering the ongoing construction work on the grid.

“This is a crucial project and it is most important to ensure that it is completed on schedule. We do not want to stall the project and have paid Rs 32 crore. The matter, however, is under arbitration,” a senior DDA official said.

The entire cost of the project is Rs 40 crore. The BSES, on its part, has refused to comment on the issue except saying, “The matter will be decided by the court. As for the project, the deadline is March 2010 and we are certain, it will be ready on time.”

According to senior DDA officials, the current guidelines do not take into account the cost of land. “When we worked with the DVB, the guidelines stipulated that we would provide them with the land to construct the grid. All other costs associated with the projects were borne by DVB. We have serious problems with the DERC’s guidelines that require us to bear 100 per cent of the cost of electrification besides providing the land in the case of a 66 KV grid,” the official added.

Sources said the fact that all revenue generated by the grid, that is the regular tariff charged from consumers, will go to the Discom, is also major issue.

For its part, the DERC has written to the Discom to ensure that there is no delay in the completion of the project.