Penalty imposed in accordance with the order issued by Electricity Regulatory Commission

Eastern Power Distribution Company Ltd (EPDCL) has slapped a fine of Rs.51.53 crore on public sector Rashtriya Ispat Nigam Limited (RINL) for ‘overdrawing’ of power defying peak hour restrictions.

The fine was levied for three months – Rs.7.78 crore for September, Rs.16.51 crore for October, and Rs.27.24 crore for November – according to a senior official of the EPDCL.

He said the penalty was imposed in accordance with the order issued by the AP Electricity Regulatory Commission (APERC).

The Navratna public sector unit RINL, corporate entity of Visakhapatnam Steel Plant, was not spared notwithstanding the special arrangement with the State government to draw more and pay the amount whenever they had a shortfall in generation from its 240 MW captive power plant.

RINL has several process units and functions round-the-clock requiring uninterrupted supply of power.

The Navratna company is ramping up new units set up under the project to expand capacity from 3.2 million tonnes to 6.3 million tonnes at a cost of Rs.12,500 crore.

Before the expansion project, it had given surplus power generously to the State Grid. With increase in its requirement due to trial production in some of the expansion units, it is now in the process of developing a 120 MW gas-based power plant.


The full expansion under the current project will take its requirement to 400 MW. RINL is credited with using modern and green technologies in captive power production.

Of 400 MW, the existing captive power plant generates 240 MW by using waste heat, gas and steam. The new plant involving an investment of Rs.420 crore will use blast furnace gas as its raw material.