New Delhi/Bhubaneswar: In a huge blow to Reliance Infrastructure-managed three power discoms in Odisha – Wesco, Nesco and Southco, the Supreme Court rejected their plea for withdrawing license cancellation order.
The three companies had moved the apex court challenging the order of Appellate Tribunal for Electricity that had upheld Odisha Electricity Regulatory Commission (OERC)’s decision to cancel the licences of Wesco, Nesco and Southco.
The apex court bench of Justice Rohinton Fali Nariman and Justice Navin Sinha turned down the plea of three power discoms disappointing the Reliance Infrastructure.
On March 4, 2015, OERC had cancelled the licences of three power distribution companies (discoms) Nesco, Wesco and Southco – all owned by Anil Ambani-controlled Reliance Infrastructure Ltd – citing unsatisfactory performance.
The management of three companies was handed over to Grid Corporation of Odisha (Gridco), which holds 49% stake in the companies, appointing Gridco’s chairman and managing director Hemant Sharma as the administrator of the discoms.
Challenging the cancellation order the three had moved the Appellate Tribunal for Electricity seeking stay and withdrawal order. However, the later had upheld the OERC’s decision while hearing the matter on August 21.