Ayana Renewable Power One Private Limited (Ayana), a solar power generation company, has been granted relief by the Central Electricity Regulatory Commission (CERC) in the matter of Change in Law events. The company had filed a petition against Solar Energy Corporation of India Limited and Madhya Pradesh Power Management Company Limited, seeking relief on account of the imposition of Safeguard Duty and increase in Integrated Goods and Services Tax (IGST).
Ayana operates a 300 MW solar power project at Village Khichiya, District Bikaner in Rajasthan, and sought compensation for the additional expenditure incurred due to two Change in Law events. The first event relates to the imposition of Safeguard Duty as per Notification No. 02/2020-Customs (SG) dated 29.07.2020, while the second event pertains to the increase in IGST from 5% to 12% for import of solar-based power devices, including solar PV modules for the project by way of Notification No. 08/2021-Integrated Tax (Rate) dated 30.09.2021.
CERC, in its order, has directed the contracting parties to carry out reconciliation of additional expenditure on account of the introduction of the two notifications by the Ministry of Finance, Government of India, along with carrying cost. The compensation will be provided along with the carrying cost on account of the Change in Law event up to the date of reimbursement by the respondents.
The Commission further directed that Madhya Pradesh Power Management Company Limited is liable to pay Solar Energy Corporation of India all the reconciled claims that the latter has to pay to Ayana. However, payment to Ayana by Solar Energy Corporation of India is not conditional upon the payment to be made by Madhya Pradesh Power Management Company Limited to Solar Energy Corporation of India.
The implementation of this order is subject to further orders of the Supreme Court in Civil Appeal No. 8880/2022, which has challenged the Appellate Tribunal for Electricity’s judgment dated 15.09.2022. The Supreme Court has directed that the final order of CERC shall not be enforced pending further orders.
, a solar power generation company, has been granted relief by the Central Electricity Regulatory Commission (CERC) in the matter of Change in Law events. The company had filed a petition against Solar Energy Corporation of India Limited and Madhya Pradesh Power Management Company Limited, seeking relief on account of the imposition of Safeguard Duty and increase in Integrated Goods and Services Tax (IGST).){kind=link}