GERC Moves Ahead With 100 MW Power Trading License Approval Despite Legal Objections In Gujarat

KPI Global Infrastructure Limited, now known as KPI Green Energy Limited, submitted an application to the Gujarat Electricity Regulatory Commission (GERC) seeking an Intra-State Electricity Trading License. The application, filed under the relevant sections of the Electricity Act, 2003, aimed to facilitate power trading within Gujarat, especially for small independent power producers (IPPs) who struggle to sell their generated power to third parties. To ensure compliance, the company issued public notices in major newspapers on September 4, 2021, and made the documents available on its website to invite public objections or suggestions.

In response, an objection was raised by Mr. Rajeshkumar Rasiklal Maniyar from Bhavnagar. He linked KPI Global to K.P. Energy Limited and alleged several violations, including unauthorized windmill installations in Mahuva Taluka and forest areas, and claimed there were ongoing legal cases. The objector suspected that the formation of KPI Global was a strategic move to escape the scrutiny surrounding K.P. Energy Limited. The applicant, in its reply, firmly denied these allegations and clarified that KPI Global Infrastructure Limited and K.P. Energy Limited are two legally distinct entities. KPI Global was incorporated in 2008, two years before K.P. Energy, with different directors except for one common director, Mr. Faruk Gulam Patel.

Further, the applicant confirmed that it has been actively involved in the solar energy business with around 100 MW generation capacity and had executed EPC contracts for small solar project developers. The company is supported by a staff of about 120 and has engaged qualified professionals, including a Chartered Accountant and a Company Secretary. It also appointed two experienced independent directors—Ms. Venu Birappa and Mr. Sharad Chandra Patil—who previously served with GETCO and GEDA, respectively.

Regarding legal issues, the company disclosed one pending criminal case against Director Mr. Faruk Gulam Patel and provided related documents. It also submitted a change-of-name certificate to reflect the new name, KPI Green Energy Limited, and filed all necessary affidavits as per GERC’s directions. Proof of service of replies to the objector was also provided.

Despite repeated hearing opportunities, the objector did not attend the proceedings. However, he later raised concerns about receiving faint and uncertified copies of the applicant’s responses and mentioned another case filed by the Gujarat Pollution Control Board in Talaja Court, Bhavnagar.

After reviewing all submissions, documents, and legal records, the Commission noted that the allegations were related to K.P. Energy Limited and not the applicant. Therefore, it found no reason to reject KPI Global’s application based on the objection. The Commission proposed to grant the trading license to KPI Green Energy Limited and initiated steps to publish this proposal for public feedback before the final decision.