CERC Adopts Tariff For 450MW Shajapur Solar Park

Rewa Ultra Mega Solar Limited (RUMSL), entrusted with responsibility to carry out bidding, select suitable solar power developer, to develop, operate and maintain 450MW Shajapur Solar Park split into three units of 105MW (Unit 1), 220MW (Unit 2) & 125MW (Unit 3) respectively.

On 19.07.2021 after e-reverse auction conducted in e-bidding portal two bidders, NTPC Renewable Energy Ltd was allocated 105MW (Unit 1) at tariff of INR 2.35/Kwh, 220MW (Unit 2) at tariff of INR 2.33/Kwh and Talettettayi Solar Projects Nine Pvt Ltd was allocated 125MW (Unit 3) at tariff of INR 2.339/Kwh.

Subsequently PPA was signed between NTPC and RUMSL and also between Talettettayi Solar Projects and RUMSL for 25 years from the date of commercial operation.

In context of the above RUMSL has submitted a petition to CERC for adoption of discovered tariff under e reverse auction process.

In response NTPC claimed as on date of bid submission GST payable was 8.9% [70% of 5% +30% of 18%], which was considered by NTPC REL while submitting its bid.

However, pursuant to above, on 30.9.2021, Ministry of Finance, Government of India vide Notification No. 8/2021 omitted the S. No. 234 from Scheduled 1 and inserted S. No. 201A in Schedule-II which attracts GST of 6% upon renewable energy devices and parties for their manufacture. As a result of the aforesaid notification, GST at the rate of 12% became applicable upon the renewable energy devices and parts for their manufacture instead of 5% which was initially applicable upon solar power generator.

Since, the aforesaid event has occurred after the cut-off date i.e. 28.6.2021, NTPC claims fulfills all the ingredients of the Change in Law provisions and expected revision of PPA rate as applicable.

But after analyzing all parties claim commission adopts the following individual tariff for the solar PV power projects as agreed to by the successful bidders, which shall remain valid throughout the period covered in the PPAs.