APTEL Upholds Solar Project’s GST Compensation

12 Feb 2025 CW Team

APTEL affirmed KERC’s decision, allowing an incremental tariff hike of Rs 0.39 /kWh for 22 years, over the existing tariff of Rs 2.91/kWh. This adjustment ensures the recovery of Rs 217.5 million for the solar project.

Background

The Karnataka Renewable Energy Development Limited (KREDL) initiated a request for proposals to develop 1,200 MW of solar projects within the 2,000 MW Pavagada Solar Park. Adyah Solar Energy won the project and signed a power purchase agreement (PPA) with HESCOM on April 28, 2018, at a tariff of Rs 2.91 /kWh.

However, in July 2018, the Ministry of Finance introduced the Safeguard Duty (SGD) and Integrated Goods and Services Tax (IGST) on imported solar modules to protect domestic manufacturers.

Adyah Solar, which used imported modules, petitioned KERC, seeking to classify the SGD and IGST as a ‘Change in Law’ event. The company claimed Rs 317.5 million in additional costs and requested a corresponding tariff increase.

In June 2021, KERC ruled in favour of Adyah Solar, recognising the imposition of SGD and IGST as a ‘Change in Law’ event. KERC awarded Rs 217.5 million in reimbursement and approved a tariff increase of Rs 0.39 /kWh for 25 years.

HESCOM challenged the ruling, arguing that tariff determination under Section 62 of the Electricity Act should not apply, as the project's tariff was initially set via competitive bidding under Section 63.

Tribunal’s analysis

APTEL dismissed HESCOM’s appeal, affirming KERC’s legal authority under Section 86(1)(b) of the Electricity Act, which allows state commissions to regulate electricity procurement prices, including those affected by changes in the law. The Tribunal upheld KERC's decision, noting that neither the bidding guidelines nor the PPA included a provision to address changes in the law.

APTEL also rejected HESCOM’s claim that the compensation of Rs 673 million over 22 years was excessive compared to the initial claim of Rs 317.5 million. It stated that spreading the compensation over 22 years accounted for the time value of money, ensuring a fair recovery for Adyah Solar without placing undue burden on consumers.

In a recent ruling, APTEL also overturned a decision by the Jharkhand State Electricity Regulatory Commission that had granted Tata Steel an exemption from renewable purchase obligations.

(Mercom)

The Appellate Tribunal for Electricity (APTEL) has dismissed an appeal by the Hubli Electricity Supply Company (HESCOM), upholding the Karnataka Electricity Regulatory Commission's (KERC) 2021 order that granted a tariff increase for a solar project to offset the higher costs due to changes in tax laws. APTEL affirmed KERC’s decision, allowing an incremental tariff hike of Rs 0.39 /kWh for 22 years, over the existing tariff of Rs 2.91/kWh. This adjustment ensures the recovery of Rs 217.5 million for the solar project. Background The Karnataka Renewable Energy Development Limited (KREDL) initiated a request for proposals to develop 1,200 MW of solar projects within the 2,000 MW Pavagada Solar Park. Adyah Solar Energy won the project and signed a power purchase agreement (PPA) with HESCOM on April 28, 2018, at a tariff of Rs 2.91 /kWh. However, in July 2018, the Ministry of Finance introduced the Safeguard Duty (SGD) and Integrated Goods and Services Tax (IGST) on imported solar modules to protect domestic manufacturers. Adyah Solar, which used imported modules, petitioned KERC, seeking to classify the SGD and IGST as a ‘Change in Law’ event. The company claimed Rs 317.5 million in additional costs and requested a corresponding tariff increase. In June 2021, KERC ruled in favour of Adyah Solar, recognising the imposition of SGD and IGST as a ‘Change in Law’ event. KERC awarded Rs 217.5 million in reimbursement and approved a tariff increase of Rs 0.39 /kWh for 25 years. HESCOM challenged the ruling, arguing that tariff determination under Section 62 of the Electricity Act should not apply, as the project's tariff was initially set via competitive bidding under Section 63. Tribunal’s analysis APTEL dismissed HESCOM’s appeal, affirming KERC’s legal authority under Section 86(1)(b) of the Electricity Act, which allows state commissions to regulate electricity procurement prices, including those affected by changes in the law. The Tribunal upheld KERC's decision, noting that neither the bidding guidelines nor the PPA included a provision to address changes in the law. APTEL also rejected HESCOM’s claim that the compensation of Rs 673 million over 22 years was excessive compared to the initial claim of Rs 317.5 million. It stated that spreading the compensation over 22 years accounted for the time value of money, ensuring a fair recovery for Adyah Solar without placing undue burden on consumers. In a recent ruling, APTEL also overturned a decision by the Jharkhand State Electricity Regulatory Commission that had granted Tata Steel an exemption from renewable purchase obligations. (Mercom)

Infrastructure Urban

10 Mar 2026

ABB to Invest Rs 6.25 Billion to Expand India Manufacturing

ABB recently announced plans to invest approximately Rs 6.25 billion ($75 million) in India during 2026 to expand its manufacturing footprint and research and development capabilities. The investment follows more than $35 million spent in 2025 and reflects the company’s continued focus on strengthening its ‘local-for-local’ strategy in the country.The investment will support ABB’s Electrification, Motion and Automation businesses and expand manufacturing capacity for infrastructure sectors such as renewable energy, metro rail, data centres and industrial applications. Approximately 300..

Equipment

10 Mar 2026

Six WOLFF Cranes Handle 60,000 m³ Concrete for German Hospital

Six WOLFF tower cranes are playing a key role in constructing a new hospital complex in Memmingen, Germany, supporting large-scale material handling for the project. The facility is being built on a 7.7-hectare site and will feature six floors, around 480 beds and a gross floor area exceeding 75,000 sq m.Building shell works began recently in February 2025. One WOLFF 6531.12 Cross crane supported early site preparation before being dismantled in autumn 2025, while five remaining cranes continue operations. Over an average deployment period of 16 months, the cranes are expected to move approxim..

Equipment

10 Mar 2026

REC Funds Rs 115.6 Million CSR Support for Bihar Eye Hospital

REC recently committed Rs 115.6 million under its Corporate Social Responsibility (CSR) programme for the procurement of clinical and non-clinical equipment at Sankara Eye Hospital in Saharsa, Bihar. The initiative aims to strengthen healthcare infrastructure and improve access to specialised eye care services in the region.A Memorandum of Agreement (MoA) was recently signed between Pradeep Fellows, Executive Director (CSR), REC Limited, and Wg Cdr V. Shankar (Retd), Trustee and Executive Director of Sankara Eye Hospital, at the REC office in the SCOPE Complex, New Delhi.The support is expecte..