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GMR Energy Ltd moved the Supreme Court challenging a Karnataka government notification that asked it to supply power to the state at Rs 5.50 a unit The company operates a barge mounted power plant at Tannir Bhavi in Mangalore district of Karnataka.

A bench headed by Chief Justice K G Balakrishnan in an interim order allowed GMR to supply power till April 13, the notified date of hearing, at the rate fixed by the Karnataka Electricity Regulatory Commission.

GMR has challenged the Karnataka High Court ruling that dismissed its petition seeking quashing of the government notification of December 30, 2008"directing all generators existing and operating in Karnataka to operate and maintain generating stations to their maximum exportable capacity and to supply power to the state grid".

Besides, GMR has also challenged a January 1, 2009, government order issued under Section 11 of the Electricity Act asking the company to supply power from its barge mounted plant at Tannir Bhavi at Rs 5.50 a unit from January to May 2009.

According to GMR, after it refused to supply to the state at a rate lower than Rs 8.88 a unit, the state had issued the impugned order.

Source - Indopia