GERC Hears NTPC REL’s 60 MW Review Petition Against GUVNL PPA Approval

The Gujarat Electricity Regulatory Commission (GERC) heard a review petition filed by NTPC Renewable Energy Ltd. (NTPC REL) regarding a previous order dated May 13, 2021. The petition sought a review of the approval granted to Gujarat Urja Vikas Nigam Ltd. (GUVNL) for its power purchase agreement (PPA) with NTPC REL. The hearing was conducted in Gandhinagar on March 24, 2025.

NTPC REL argued that certain changes in domestic duties, levies, and taxes should qualify as a “Change in Law” event under Clause 6.2(4) of the National Tariff Policy, 2016. The company also pointed out that the Competitive Bidding Guidelines issued by the Ministry of Power on August 3, 2017, required any deviations in the PPA to be pre-approved by the Commission. However, NTPC REL claimed that GUVNL did not obtain such approval before issuing the bid documents. The petitioner further stated that when GUVNL filed for PPA approval in 2021, it did not disclose any deviations from these guidelines.

NTPC REL specifically highlighted that when the Request for Selection (RfS) was issued, prior approval for deviations was not sought. The company sought to amend certain articles of the PPA to include additional costs related to taxes, duties, and surcharges on imported solar equipment. The petitioner cited the Ministry of Finance’s notification from September 30, 2021, which increased the Goods and Services Tax (GST) rate on renewable energy devices from 5% to 12%. NTPC REL argued that these policy changes significantly increased project costs and should be considered a deviation requiring approval from the Commission.

On the other hand, GUVNL contended that NTPC REL had no standing to file the review petition at this stage. The company argued that NTPC REL had willingly participated in the bidding process and had agreed to the terms outlined in the PPA. GUVNL also pointed out that NTPC REL had acknowledged and accepted the bidding terms in writing. The respondent asserted that the Change in Law clause in the PPA was consistent with the Ministry of Power’s guidelines and did not require additional approvals. GUVNL also cited a Kerala High Court judgment from February 1, 2023, which ruled that bidders cannot challenge the terms of a tender after participating in the process.

During the hearing, NTPC REL informed the Commission that 60 MW of its project had already been commissioned. After hearing arguments from both parties, the Commission allowed them to submit written arguments within two weeks and reserved its final order on the matter.