The Rajasthan Electricity Regulatory Commission (RERC) has addressed two petitions concerning Change in Law claims related to 975 MW of grid-connected solar power projects in Pokhran, Jaisalmer, Rajasthan. The petitions, filed under RERC/2351/2025 and RERC/2352/2025, were brought by two solar power developers against the Solar Energy Corporation of India Limited (SECI) and Rajasthan Urja Vikas & IT Services Limited (RUVITL).
The petitions relate to solar projects of 375 MW and 600 MW, respectively. The projects supply power under back-to-back Power Purchase Agreements (PPAs) with SECI at an adopted tariff of ₹2.18 per kWh. The power is subsequently supplied to state distribution utilities through RUVITL.
The developers sought economic restitution under the Change in Law provisions of Article 12 of their PPAs, arguing that several statutory and regulatory changes introduced after the July 1, 2021 bid cut-off date had increased their project development costs.
One of the major claims relates to changes in customs regulations. The Finance Act, 2023 and amendments to the Project Import Regulations, 1986 excluded solar power projects from certain project import benefits under Chapter 9801. According to the developers, this resulted in imported solar cells and modules being subject to higher individual tariff rates. The petition cited Basic Customs Duty rates of 25% on solar cells and 40% on modules, compared with the earlier concessional treatment.
The developers also cited the introduction of the Goods and Services Tax (GST) Reverse Charge Mechanism on certain rentals. Notification No. 09/2024-Central Tax (Rate), effective October 10, 2024, made renting of non-residential property from unregistered persons subject to GST under the reverse charge mechanism. The developers claimed that this created an additional tax burden on land leases associated with the projects.
Another claim concerned technical requirements for grid connectivity. A Central Electricity Authority (CEA) Working Group report issued in July 2022 prescribed additional requirements for solar projects, including dedicated reactive power compensation equipment such as capacitor banks and Static Var Compensators, along with revised ambient temperature considerations for equipment design. The developers argued that compliance with these requirements increased project costs.
The petitions also covered anti-dumping duty imposed on anodized aluminium frames used in solar modules. Through Notification No. 16/2024-Customs (ADD), dated September 27, 2024, anti-dumping duties were imposed on such frames imported from China for five years.
SECI opposed the customs duty-related claims, stating that the bidding documents and PPAs had incorporated an MNRE Office Memorandum dated March 9, 2021. It argued that bidders were aware of the notified BCD trajectory before submitting their bids and had contractually waived Change in Law claims relating to BCD imposition. SECI also maintained that amendments to the Project Import Regulations represented changes to a procedural framework and did not qualify as unforeseen statutory changes.
RERC examined the contractual provisions, submissions and applicable precedents concerning Change in Law, restitution, carrying costs and tariff adjustments under the Electricity Act, 2003. The Commission has directed operational reconciliation between the concerned parties wherever applicable.
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