Azure Gets Relief From CERC In 800 MW Module Safeguard Duty Case

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Azure Power, one of India’s largest solar IPP, had requested for relief after the imposition of the safegaurd duty on solar modules.

Azure had requested CERC to declare the imposition of Safeguard Duty on the import of solar panels/modules as a ‘Change in Law’ event. Azure had also petitioned that SECI reimburse the additional cost of safeguard duty imposed on the project cost on lumpsum basis.

India had introduced safeguard duty under the SGD Notification to be imposed on the import of solar cells whether or not assembled in modules or panels when the import is from certain specific countries, namely, China PR, Malaysia and certain other developed countries. The safeguard duty had not been imposed on the import of solar cells from other developing countries.

The 800 MW capacity consisted of 200 MW project under the NSM Guidelines for selection of 5000 MW Grid Connected Solar PV Power Projects under PhaseII Batch IV, held in Dec 2017 and a 600 MW under the reverse auction under in held in July 2018.

CERC has directed that SECI may recover the above compensation amount from the DISCOMs with whom the Power Supply Agreement (PSA) has been signed.

The amount will be decided based on actual SGD paid upon submission of all relevant documents exhibiting clear and upon establishing a  one to one correlation between the projects and the supply of imported goods, duly supported by relevant invoices and Auditor’s Certificate. 

The payment to be made by SECI is not conditional upon the payment to be made by the Discoms to SECI. The claims have to be settled within sixty days of the date of the Order or from the date of submission of claims, whichever is later, failing which it will attract late payment surcharge as provided under PPAs/PSAs.

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