The Appellate Tribunal for Electricity (APTEL) has ruled that Indian Railways is liable to pay a cross-subsidy surcharge to the state distribution companies (Discoms). The order was passed on Monday to resolve the ongoing conflict between Indian Railways and Discoms regarding whether the railways can be considered a deemed distribution licensee under the Electricity Act. Discoms argued that the Railways should pay the surcharge as it engaged in the sale of electricity, but the Railways contended that it does not fall under this category. APTEL has now resolved the matter by declaring that the Railways will have to pay the applicable surcharge to Discoms.
