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Daily News Wrap-Up: APTEL Criticizes MERC for Denying Petitioner Relief

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					</table>Haryana Electricity Regulatory Commission (<a href="https://herc.gov.in/" target="_blank" rel="noopener">HERC</a>) has provided a series of clarifications on the difficulties in implementing certain sections of the HERC (Green Energy Open Access) Regulations, 2023.
It was responding to a petition filed by Uttar Haryana Bijli Vitran Nigam (<a href="https://www.uhbvn.org.in/web/portal/home" target="_blank" rel="noopener">UHBVNL</a>).
Applicability of imbalance charges
The petitioner raised concerns about the application of imbalance charges. While the HERC has provided clarity on the inapplicability of reliability charges for open access consumers, questions persist regarding the status of imbalance charges set to compensate power distribution companies (DISCOMs) on account of the unscheduled injection/drawal made by the solar power generators.
Commission’s view
The Commission stated that while reliability charges will not apply for open access consumers, imbalance charge is applicable and will be governed by the DSM Regulations or Open Access Regulations.
Applicability of wheeling and transmission charges on captive solar projects 
Regulation 68 of the HERC (Terms and Conditions for the Determination of Tariff from Renewable Energy Sources, Renewable Purchase Obligation, and Renewable Energy Certificate) Regulations, 2021, states that irrespective of other regulations set by the Commission, wheeling and transmission charges will be exempted throughout the project&#8217;s lifespan from the commissioning date.
This exemption applies to all captive solar power projects that have applied for registration with the Haryana Renewable Energy Development Agency, acquired land (either through purchase or lease for thirty years), and invested a minimum of ₹10 million (~$120,144) /MW in equipment and machinery by February 13, 2019.
However, under the Green OA Regulations, 2023, charges applicable to all green energy open access consumers encompass transmission and wheeling charges.
Commission’s view
The Commission clarified that the exemption of transmission and wheeling charges on captive solar plants commissioned on or before February 13, 2019, provided under HERC RE Regulations 2021, will continue to be made applicable.
Timing of peak load hours
Regulation 7(4) of the Green Open Access Regulations, 2023, dictates the conditions for banking and drawal of power for renewable captive projects owned at least 26% by a single captive user. While banking is permitted throughout the billing cycle, the withdrawal of banked power is restricted during peak load hours, aligning with the Time-of-Day (ToD) tariff approved by the Commission.
For the 2023-24 financial year, the ToD tariff designates peak load hours from 5:30 PM to 9:00 PM, applicable to consumers opting for ToD/ToU Tariff/Night-time concessional tariff from UHBVN between November 2023 and March 2024.
However, for the imposition of Peak Load Energy Charges (PLEC), general instructions consider peak load hours from 6:30 PM to 10:00 PM.
Commission’s view
The Commission said that it is expressly provided in the HERC (Green Energy Open Access) Regulations that peak load hours will be as mentioned in the ToD tariff approved by the Commission.
Adjustment of banked energy
Regulation 7(5) of the Green OA Regulations, 2023, stipulates that renewable power adjustment for Green OA Consumers will be based on a first-charge basis in the order of energy consumption. The daily calculation of banked energy and energy drawal from the grid is conducted at the end of each day in a given month.
However, Regulation 7(1) emphasizes that banked energy cannot proceed to the next billing cycle. Any unutilized banked energy at the end of the billing cycle will lapse without any compensation, and the renewable energy generating station is entitled to renewable energy certificates for the lapsed banked energy.
The petition sought to know whether the banking is counted daily or in 15-minute slots. If it is the latter, the energy banked on the last day of the billing cycle can be utilized from the very next time slot of the same day.
Commission’s view
The Haryana regulator said that HERC (Green Energy Open Access) Regulations that the banking will be counted on a daily basis for the monthly account, and the unutilized banked energy at the end of the billing cycle will lapse.
Injection /drawal of green energy 
Regulation 4 outlines the eligibility criteria for green energy open access, specifying that the open access should be for a minimum of twelve time blocks of 15-minute intervals during a day, and the consumer should not change the quantum of power consumed through open access within these time blocks.
The petitioner raised the following questions:
<ul>
<li>Whether the eligibility condition for a constant drawal of power for twelve-time blocks should be evaluated based on scheduled or actual drawal through green energy open access.</li>
<li>If the twelve-time blocks are continuous, whether the consumer must draw continuously for only 3 hours per day or if this requirement should be repeated for every change in drawal.</li>
<li>Would penalties be imposed on green open access consumers failing to meet the criteria, and if so, the conditions for imposing such penalties, including whether scheduled drawal or actual drawal data, should be considered.</li>
<li>Whether failure to comply with the eligibility condition renders consumers ineligible for benefits outlined in the Green OA Regulations, 2023, and if they would still be entitled to benefits specified in the HERC (Terms and Conditions for Determination of Tariff from Renewable Energy Sources, Renewable Purchase Obligation and Renewable Energy Certificate) Regulations, 2021.</li>
<li>Whether the proviso applies to the drawal of banked energy, and if so, whether the consumer should keep its total drawal (real-time + drawal from banking) continuous for twelve-time blocks or if both drawals should be considered separately for eligibility.</li>
<li>Clarification is sought on whether the proviso applies to solar/wind-based captive consumers where power injection is not static.</li>
</ul>
Commission’s view
The Commission said that the schedule drawal is to be considered for evaluating the eligibility condition for constant drawal of power for twelve-time blocks of 15-minute intervals.
It clarified that the condition of drawing continuous open access power for twelve time blocks of 15-minute intervals is applicable for the entire day and not to be repeated for change in power by a consumer in a day.
Renewable Energy Certificates 
Regulation 4 outlines the eligibility criteria for Green Energy Open Access, specifying that the open access should be for a minimum of twelve-time blocks of 15-minute intervals during a day, and the consumer should not change the quantity of power consumed through open access within these time blocks.
The petitioner sought clarifications on various aspects of this regulation:
<ul>
<li>Whether the eligibility condition for a constant drawal of power for twelve-time blocks should be evaluated based on scheduled drawal or actual drawal through Green Energy Open Access.</li>
<li>If the twelve-time blocks are continuous, clarification is sought on whether the consumer must draw continuously for only 3 hours per day or if this requirement should be repeated for every change in a drawal.</li>
<li>The petitioner asks if penalties would be imposed on Green Open Access Consumers failing to meet the criteria, and if so, the conditions for imposing such penalties, including whether scheduled drawal or actual drawal data should be considered.</li>
<li>Whether failure to comply with the eligibility condition renders consumers ineligible for benefits outlined in the Green OA Regulations, 2023, and if they would still be entitled to benefits specified in the HERC (Terms and Conditions for Determination of Tariff from Renewable Energy Sources, Renewable Purchase Obligation and Renewable Energy Certificate) Regulations, 2021.</li>
<li>Whether the proviso applies to the drawal of banked energy, and if so, clarification is sought on whether the consumer should keep its total drawal (real-time + drawal from banking) continuous for twelve-time blocks or if both drawals should be considered separately for eligibility.</li>
<li>Whether the proviso applies to Solar/Wind-based Captive consumers where power injection is not static.</li>
</ul>
Commission’s view
The Commission said that it is provided in the HERC (Green Energy Open Access) Regulations in vogue that a green energy certificate will be issued to consumers for green energy supplied to them beyond their RPO. The clarification sought regarding their eligibility for REC is beyond the scope of HERC (Green Energy Open Access) Regulations, 2023
In April, Haryana <a href="https://www.mercomindia.com/haryana-regulator-notifies-green-open-access-regulations/" target="_blank" rel="noopener">issued</a> its Green Energy Open Access Regulations, 2023, in line with the Union government’s green energy open access rules introduced last year.
Subscribe to Mercom’s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates </a>to ensure you don’t miss any critical updates from the renewable industry.

Haryana Regulator Clarifies Issues in Implementing Green Energy Open Access

The Uttar Haryana Bijli Vitran Nigam (<a href="https://www.uhbvn.org.in/" target="_blank" rel="noopener">UHBVNL</a>) has invited an expression of interest (EoI) for setting up decentralized grid-connected solar power projects with an aggregate capacity of 28 MW under Component-A of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM KUSUM) program.
The scope of work includes setting up decentralized grid-connected ground-mounted solar power projects of 500 kW to 2 MW capacities to be connected to respective 33/11 kV, 66/11 kV, and 132/11 kV substations in rural areas.
Solar projects with a total capacity of 23 MW will be set up in UHBVNL’s operating area and 5 MW in the solar city in Panchkula. The land requirement for setting up the solar project is four acres per MW.
The last day to submit the bids is April 21, 2022. The bids will be opened on the same date.
The bid is open to farmers, groups of farmers, panchayats, co-operatives, farmer producer organizations, and water user associations of the UHBVNL. Individual farmers can develop solar projects utilizing their barren, uncultivable pasture or marshy land. Agricultural land is also permitted under the program, provided that solar projects are installed in a stilt fashion.
Bidders must furnish an earnest money deposit of ₹100,000 (~$1,324)/MW of the applied capacity. Bidders must also pay a non-refundable bid processing fee of ₹5,000 (~$66). Successful bidders must submit a performance bank guarantee of ₹500,000 (~$6,618)/MW for the capacity awarded within 30 days from the issuance of the Letter of Award (LoA).
The cells and modules used in the project must be sourced only from the models and manufacturers included in the “Approved List of Models and Manufacturers” as published and updated by the Ministry of New and Renewable Energy (MNRE).
The selected solar power generator must execute the power purchase agreement (PPA) with the Haryana Power Purchase Centre within two months from the date of issue of LoA at ₹3.11 (~$0.04)/kWh for 25 years. The solar power generator will be free to operate the plant after the expiry of the PPA if other conditions such as land lease, and permits, are met.
Interested farmers, farmer groups, cooperatives, panchayats, or farmer producer organizations should have a land or a lease agreement to be eligible for the bid. If the farmer or farmer bodies opt to set up the solar project through the developer, they will be entitled to lease the land per the agreed terms and conditions.
Solar power generators must maintain a Capacity Utilization Factor (CUF) of at least 15% annually during the entire period of the PPA. The selected bidder must commission the solar project within 12 months from the date of issuance of the LoA.
The bidders must show the details of proportionate funds for at least 30% of the cost of the capacity applied, considering ₹40 million (~$529,504)/MW to be the cost for installing the solar power project. In the case of a developer, the developer&#8217;s net worth for the financial year ended on March 31, 2021, should not be less than ₹10 million (~$132,380)/MW of the capacity applied.
In August last year, UHBVNL had <a href="https://mercomindia.com/tender-residential-rooftop-solar-systems-haryana/" target="_blank" rel="noopener">invited</a> expression of interest for empanelment of agencies to set up grid-connected residential rooftop solar systems of capacities ranging from 1 kW to 500 kW in ten separate locations falling under the jurisdiction of UHBVNL.
As per Mercom’s <a href="https://mercomindia.com/product/india-solar-tender-tracker/" target="_blank" rel="noopener">India Solar Tender Tracker</a>, UHBVNL has tendered 600 MW solar projects in Haryana.

Bids Invited for 28 MW of Decentralized Solar Projects Under KUSUM Program in Haryana

The Haryana Electricity Regulatory Commission (<a href="https://herc.gov.in/" target="_blank" rel="noopener">HERC</a>) has approved the distribution company (DISCOM) Uttar Haryana Bijli Vitran Nigam&#8217;s (<a href="https://uhbvn.org.in/web/portal/home" target="_blank" rel="noopener">UHBVNL</a>) petition seeking relaxation for supplying electricity for electric vehicle (EV) charging at consumer premises already having electricity connection for other purposes.
Background-
UHBVN had filed a petition with the Commission citing a tariff order issued on March 30, 2021, wherein concessional tariff for EV charging stations was set at ₹5.55 (~$0.075)/kWh or ₹5 (~$0.067)/kVAh and fixed charges at ₹100 (~$1.34)/kW/kVA per month for faster adoption of EVs.
The benefit of &#8216;time of day or use’ tariff was allowed on the total consumption for EV charging stations having electricity supply at high tension (HT) level, instead of incremental consumption in off-peak demand period (November to March).
UNBVN, in its petition, cited that it had received applications for EV charging connections from the consumers, wherein the consumers already had a connection for a specific purpose in their premises. According to DISCOM, in such a scenario releasing an additional connection for EV charging contradicts the existing HERC regulation of &#8216;one connection in one premise.&#8217;
Apart from this, if a portion of the residential or industrial premises is regularly used for any commercial activity, then a separate connection under non-domestic supply must be obtained for the same.
Commission&#8217;s Orders
The DISCOM appealed that the tariff applicable for charging EVs at consumer premises (other than charging stations) be the same as applicable for the relevant category of connection at the same premises. The Commission approved this request.
It was also petitioned that the tariff for EV charging stations on single-point delivery be applicable for battery charging at swapping facilities. But such facilities must be exclusively used for swapping e-rickshaw or electric vehicle batteries, to which the Commission agreed.
The Commission also accepted the request for a separate connection for EV charging at retail outlets of oil marketing companies, housing societies, malls, office complexes, restaurants, hotels, metro station parking lots or its premises, and others.
DISCOMs may adopt minus metering by providing separate wiring and metering for EV charging activities when a single-point connection has been provided at the premises. A separate EV connection will be required at the low tension (LT) level. The Commission has allowed this request also.
The Commission also approved the appeal demanding that the consumer must have approval for safety and fire clearance for EV charging station wherever applicable from the concerned department such as Petroleum and Explosives Safety Organization (PESO), fire department, etc.
Recently, BSES Rajdhani Power (<a href="https://www.bsesdelhi.com/web/brpl/home" target="_blank" rel="noopener">BRPL</a>) had <a href="https://mercomindia.com/bses-rajdhani-empanel-private-ev-charging/" target="_blank" rel="noopener">invited</a> proposals to empanel vendors for deploying electric vehicle (EV) charging infrastructure across various sites in Delhi. These include semi-public sites or commercial buildings such as malls, offices, etc.; institutional buildings such as hospitals, colleges, group housing societies, resident welfare associations, government offices, etc.; grocery stores, shops; and private property owners, bungalows, and apartments.
Subscribe to Mercom&#8217;s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates </a>to ensure you don&#8217;t miss any critical updates from the renewable industry.

Power Supply Relaxations in Haryana for EV Charging at Consumer Premises

The Uttar Haryana Bijli Vitran Nigam (<a href="https://www.uhbvn.org.in/" target="_blank" rel="noopener">UHBVNL</a>) has invited expression of interest for empanelment of agencies to set up grid-connected residential rooftop solar systems of capacities ranging from 1 kW  to 500 kW in 10 separate locations that fall under the jurisdiction of UHBVN
These locations are Panchkula, Ambala, Kaithal, Kurukshetra, Yamunanagar, Karnal, Panipat, Sonepat, Jhajjar, and Rohtak. The last date for submission of bids is August 26, 2021. The bids would be opened on August 27, 2021.
Bidders are expected to pay a non-refundable fee of ₹5,900 (~$80) as a tender fee and ₹1,180 (~$16) as an e-service fee.
Scope of work
The scope of work includes design, supply, installation, testing, and commissioning and includes a five-year warranty and comprehensive maintenance contract for five years of the grid-connected residential rooftop solar systems of capacities 1 kW to 500 kW.
The scope also includes wiring up to the distribution board from the solar photovoltaic (PV) rooftop system. A maximum cable length of 25 meters would be provided for every solar power project installed. The supply of excess cable length, if required, would be provided by the consumer or beneficiary.
The successful bidder will supply spares free of cost to maintain the offered items during the warranty period and would also provide a leaflet containing the details of the operation, and the service centers must be provided to each purchaser as well as to UHBVN.
The project&#8217;s operation and maintenance (O&amp;M) includes warranty against wear, tear, overhauling, machine breakdown, insurance, and replacement of defective modules, invertors or power conditioning unit (PCU), spares, and consumables, and other parts for five years.
The successful bidder will replace non-performing or under-performing PV panels free of cost during the warranty period.
The successful bidders can only use solar PV cells and modules covered in the approved list of modules and manufacturers (ALMM) for the project to become eligible for central financial assistance (CFA) or subsidy.
PV modules must meet the latest specification of the Ministry of New and Renewable Energy (<a href="https://mnre.gov.in/" target="_blank" rel="noopener">MNRE</a>). They should be tested and approved by one of the International Electrotechnical Commission (<a href="https://www.iec.ch/homepage" target="_blank" rel="noopener">IEC</a>) authorized test centers.
The inverters should be tested from the MNRE approved test centers or National Accreditation Board for Testing and Calibration Laboratories (<a href="https://nabl-india.org/" target="_blank" rel="noopener">NABL</a>) or Bureau of Indian Standards (<a href="https://bis.gov.in/" target="_blank" rel="noopener">BIS</a>) or IEC accredited or authorized testing-calibration laboratories.
In the case of imported PCUs, these should be approved by international test houses.
The empanelment period is one year from the date of empanelment, which may be extended by one more year, on mutual consent. Successful bidders are expected to complete the project in 30-90 days depending upon the capacity
Eligibility criteria
The bidder must have the adequate financial capability to meet the scope of work. The bidder must have ample post-installation localized service facilities or centers.
The table below elaborates the financial, technical eligibility criteria for various capacity ranges under the EOI.
<a href="https://mercomindia.com/wp-content/uploads/2021/08/UHBVNL-Technical-and-Financial-Criteria-for-Empanelment-of-Agencies-for-Rooftop-Solar-Power-Projects-at-Residential-Premises.png"><img loading="lazy" decoding="async" class="aligncenter size-full wp-image-28093" src="https://mercomindia.com/wp-content/uploads/2021/08/UHBVNL-Technical-and-Financial-Criteria-for-Empanelment-of-Agencies-for-Rooftop-Solar-Power-Projects-at-Residential-Premises.png" alt="UHBVNL Technical and Financial Criteria for Empanelment of Agencies for Rooftop Solar Power Projects at Residential Premises" width="761" height="339" srcset="https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/08/UHBVNL-Technical-and-Financial-Criteria-for-Empanelment-of-Agencies-for-Rooftop-Solar-Power-Projects-at-Residential-Premises.png 761w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/08/UHBVNL-Technical-and-Financial-Criteria-for-Empanelment-of-Agencies-for-Rooftop-Solar-Power-Projects-at-Residential-Premises-300x134.png 300w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/08/UHBVNL-Technical-and-Financial-Criteria-for-Empanelment-of-Agencies-for-Rooftop-Solar-Power-Projects-at-Residential-Premises-650x290.png 650w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/08/UHBVNL-Technical-and-Financial-Criteria-for-Empanelment-of-Agencies-for-Rooftop-Solar-Power-Projects-at-Residential-Premises-624x278.png 624w, https://mercomindia.s3.ap-south-1.amazonaws.com/wp-content/uploads/2021/08/UHBVNL-Technical-and-Financial-Criteria-for-Empanelment-of-Agencies-for-Rooftop-Solar-Power-Projects-at-Residential-Premises-600x267.png 600w" sizes="(max-width: 761px) 100vw, 761px" /></a>
Only individual firms can participate in the bidding; joint ventures or consortiums are barred from applying.
Only manufacturers of solar modules, solar cells, and system integrators who fulfill the pre-determined technical and financial criteria would be allowed to participate in the bidding process. The bidder must have experience in supply, installation, testing, commissioning, maintenance, or after-sale services in grid-connected solar photovoltaic systems.
In 2019, UHBVNL had <a href="https://mercomindia.com/haryana-discom-empanelment-agencies-residential-rooftop/" target="_blank" rel="noopener">issued</a> an expression of interest to empanel agencies to install grid-connected residential rooftop solar systems of 1kW-500 kW capacities. These projects were to be developed in nine operation circles of UHBVNL, namely,  Ambala, Kaithal, Kurukshetra, Yamunanagar, Karnal, Panipat, Sonepat, Jhajjar, and Rohtak.
Subscribe to Mercom&#8217;s <a href="https://mercomindia.com/product/india-solar-tender-tracker/" target="_blank" rel="noopener">India Solar Tender Tracker</a> to stay on top of tender activity in real-time.
&nbsp;

Empanelment Tender Issued for Residential Rooftop Solar Systems in Haryana

The Haryana Electricity Regulatory Commission (<a href="https://herc.gov.in/" target="_blank" rel="noopener">HERC</a>), in a recent ruling, exempted a bagasse-based cogeneration project owner from paying cross-subsidy surcharge and additional surcharge and quashed the recovery notice issued by the Uttar Haryana Bijli Vitran Nigam Limited (UHBVNL).
The Commission ruled that the power purchase agreement (PPA) signed between the parties should be adhered to. It said that the distribution companies (DISCOMs) should recover the electricity duty according to the Haryana government&#8217;s relevant notification.
Shahabad Cooperative Sugar Mills had filed a petition requesting exemption from paying the cross-subsidy surcharge and the additional surcharge. It had also requested the Commission to quash the recovery notice issued by the DISCOM.
Background
Shahabad Cooperative Sugar Mills entered into a PPA with the Haryana Power Purchase Center (HPPC) on June 18, 2009. HPPC agreed to purchase 24 MW of electricity generated from its bagasse-based cogeneration power project, out of which 16 MW to 18 MW was to be exported to the grid.
UHBVNL issued a recovery notice dated August 29, 2019, and asked the petitioner to pay a cross-subsidy surcharge, additional surcharge, and any other charges as notified by the Commission.
Shahabad Cooperative Sugar Mills, in its submission, said that the imposition of the cross-subsidy, additional surcharge, or any other charges was not justified as the government set up the project for social welfare and that all cooperative sugar mills were running in losses.
HPPC, in its reply, said that the petitioner projected itself as a captive power project which used a part of its generation for its captive usage. In principle, cross-subsidy surcharge, and additional surcharge are payable on electricity consumed in the distribution licensee area except for the projects meeting the captive status.
Further, the DISCOM added that Shahabad Sugar Mills being a consumer to the extent of the power consumed by its sugar mill and the fact that it had failed to satisfy the requirement of a captive generating project made it liable to pay the cross-subsidy surcharge and other charges.
Commission&#8217;s Analysis
The Commission considered the objection raised by HPPC and observed that a &#8216;cooperative&#8217; was also a form of company.
It observed that the electricity duty levied and recovered as notified by the state government was not in the purview of the state Commission.
The petitioner&#8217;s power project was envisaged as a cogeneration project using bagasse as fuel during the cane crushing season and not as a captive power project.
The state regulator added that the cross-subsidy surcharge was payable only if the consumer availed open access to procure power from a source other than the area&#8217;s distribution licensee. But Shahabad Sugar Mills was not availing supply of power from any other source but meeting its requirements from its cogeneration power project and its area distribution licensee.
In the present case, the supply of electricity was neither from a person other than the distribution licensee of the area nor was wheeling of power involved.  Hence, there was no need for the petitioner to pay the additional surcharge.
The Ministry of New and Renewable Energy (MNRE) recently <a href="https://mercomindia.com/mnre-biomass-program-extended/" target="_blank" rel="noopener">extended</a> the validity of its biomass-based cogeneration program. The program has been extended until March 31, 2021, or until the 15th Finance Commission&#8217;s recommendations come into effect, whichever comes first. The program was set to end in March 2020.
Earlier, HERC had <a href="https://mercomindia.com/paddy-straw-biomass-projects/" target="_blank" rel="noopener">set</a> the state&#8217;s levelized tariffs for three biomass power projects at ₹4.93 (~$0.07)/kWh, ₹4.92 (~$0.06)/kWh, and ₹4.47 (~$0.05)/kWh.
Subscribe to Mercom&#8217;s real-time <a href="https://mercomindia.com/product/mercoms-renewable-energy-regulatory-updates/" target="_blank" rel="noopener">Regulatory Updates </a>to ensure you don&#8217;t miss any critical updates from the renewable industry.
Image Credit: Jonathan Wilkins <a href="https://upload.wikimedia.org/wikipedia/commons/3/35/Bagasse_de_cana_sendo_carregado.jpg" target="_blank" rel="noopener">CC</a>

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