CSERC Approves 51 MVA Contract Demand Relaxation For Industrial Plant Expansion In Chhattisgarh

The Chhattisgarh State Electricity Regulatory Commission (CSERC) has approved a request from M/s Shree Cement Limited to increase its contract demand (CD) from 37 MVA to 51 MVA at its Khapardih cement plant in Baloda Bazar district. The order was passed on July 20, 2026, in Petition No. 54 of 2025, allowing the company to exceed the standard contract demand limit applicable at the 132 KV voltage level.

Shree Cement had approached the Commission seeking an additional 14 MVA contract demand to support the expansion of its manufacturing capacity. The company is increasing its production capacity from 9.20 million tonnes per annum (MTPA) to around 12.20 MTPA, which requires additional electricity supply for its operations.

As per Regulation 3.4 of the Chhattisgarh State Electricity Supply Code, 2011, the maximum permissible contract demand for consumers connected at the 132 KV level is generally limited to 40 MVA. Any requirement beyond this limit requires approval and relaxation from CSERC.

The petition was filed against Chhattisgarh State Power Distribution Company Limited (CSPDCL) and Chhattisgarh State Power Transmission Company Limited (CSPTCL). During the proceedings, CSPTCL submitted that the existing infrastructure at the 220/132 KV Suhela Substation was capable of handling the increased demand.

CSPTCL informed the Commission that after the enhancement, the current flow would rise to around 225 amperes. Since current transformers (CTs) can operate up to 20% above their rated capacity while maintaining accuracy, the existing 200 A equipment could safely manage loads up to 240 A. However, the transmission utility stated that CT augmentation and other required technical upgrades would need to be carried out, with the associated expenses borne by Shree Cement.

Another major issue considered by the Commission was the applicability of additional charges for exceeding the prescribed contract demand limit. Shree Cement argued that the Chhattisgarh State Electricity Regulatory Commission’s Multi-Year Tariff (MYT) Regulations, 2021, did not provide any specific provision for imposing additional charges on high-voltage consumers. The company stated that it should only pay actual line losses arising from the increased capacity.

Rejecting this argument, CSERC clarified that tariff regulations and supply code provisions operate in different areas. The Commission stated that contract demand enhancement is governed by the State Supply Code, which allows additional charges for high-tension consumers exceeding the standard limit.

Under the applicable Tariff Order for FY 2026–27, Shree Cement will have to pay an additional 5% charge on energy charges for the enhanced contract demand. The approval was granted by the CSERC bench comprising Member (Law) Vivek Ganodwale and Member (Technical) Ajay Kumar Singh, subject to the company bearing all costs related to technical upgrades and complying with the additional billing conditions.