CERC approves tariffs for SECI's 1,200 MW wind projects, recognising GST changes?

18 Mar 2024 CW Team

The Commission recognised the increase in GST rates on renewable energy devices as a Change in Law event following a notification from the Ministry of Finance after July 6, 2021. This recognition entitles wind power developers to appropriate remedies specified in the power purchase agreements (PPAs) due to additional expenditures resulting from the Change in Law event.

SECI had previously filed a petition under Section 63 of the Electricity Act, 2003, seeking tariff adoption for the wind power projects (Tranche-XI) connected to ISTS. SECI requested the adoption of tariffs determined through a competitive bid process, approval of trading margins, and acknowledgement of clauses in PPAs regarding changes in safeguard duty, GST, and primary customs duty rates.

Respondents included ReNew Naveen Urja, Anupavan Renewables, Green Infra Wind Energy, Azure Power, Adani Renewable Energy, Two Wind Energy, Madhya Pradesh Power Management Company, Chhattisgarh State Power Distribution Company, and Uttar Pradesh Power Corporation.

SECI conducted an e-reverse auction on September 9, 2021, and granted a letter of award (LOA) to selected companies on October 21, 2021. The projects are expected to be commissioned in 2023-24, facilitating the meeting of distribution licensees' Renewable Purchase Obligations and providing power at economical rates.

The Commission analysed the case on February 7, 2023, and considered the objections raised by respondents. It noted SECI's amendments post-bid and recognised the increase in GST rates as a Change in Law event, granting wind power developers applicable reliefs.

The Commission emphasised that the present proceedings focus solely on tariff adoption and directed respondents to file separate petitions addressing concerns related to PPAs.

Furthermore, CERC recently permitted a renewable energy developer to claim compensation to counteract the financial impact of Change in Law events due to increased goods and service tax rates.

The Central Electricity Regulatory Commission (CERC) has approved tariffs for SECI's 1,200 MW wind power projects. Tariffs of Rs 2.69 (0.0326)/kWh (450 MW, 120 MW) have been sanctioned, along with a trading margin of Rs 0.07 (~$0.00084)/kWh. This approval applies to wind power projects connected to the interstate transmission system (ISTS) under Tranche-XI to operate on a build-own-operate basis.The Commission recognised the increase in GST rates on renewable energy devices as a Change in Law event following a notification from the Ministry of Finance after July 6, 2021. This recognition entitles wind power developers to appropriate remedies specified in the power purchase agreements (PPAs) due to additional expenditures resulting from the Change in Law event.SECI had previously filed a petition under Section 63 of the Electricity Act, 2003, seeking tariff adoption for the wind power projects (Tranche-XI) connected to ISTS. SECI requested the adoption of tariffs determined through a competitive bid process, approval of trading margins, and acknowledgement of clauses in PPAs regarding changes in safeguard duty, GST, and primary customs duty rates.Respondents included ReNew Naveen Urja, Anupavan Renewables, Green Infra Wind Energy, Azure Power, Adani Renewable Energy, Two Wind Energy, Madhya Pradesh Power Management Company, Chhattisgarh State Power Distribution Company, and Uttar Pradesh Power Corporation.SECI conducted an e-reverse auction on September 9, 2021, and granted a letter of award (LOA) to selected companies on October 21, 2021. The projects are expected to be commissioned in 2023-24, facilitating the meeting of distribution licensees' Renewable Purchase Obligations and providing power at economical rates.The Commission analysed the case on February 7, 2023, and considered the objections raised by respondents. It noted SECI's amendments post-bid and recognised the increase in GST rates as a Change in Law event, granting wind power developers applicable reliefs.The Commission emphasised that the present proceedings focus solely on tariff adoption and directed respondents to file separate petitions addressing concerns related to PPAs.Furthermore, CERC recently permitted a renewable energy developer to claim compensation to counteract the financial impact of Change in Law events due to increased goods and service tax rates.

Infrastructure Transport

02 Jun 2026

Concord Associate Bags Rs 2.79 Bn Kavach Order

Concord Control Systems said its associate company, Progota India, has received a Rs 2.79 bn domestic order from Indian Railways for the supply, installation, testing and commissioning of on-board Kavach 4.0 loco equipment.The order is scheduled for execution within 12 months and strengthens Concord’s role in India’s railway safety and signalling ecosystem. Kavach is India’s indigenous automatic train protection system, designed to improve operational safety by helping prevent signal passing at danger and reducing collision risks.Gaurav Lath, Joint Managing Director, Concord Control Syst..

Technology

02 Jun 2026

Dhoot Partners RideVision For ADAS Solutions

Dhoot Transmission has partnered with Israel-based RideVision to introduce Advanced Driver Assistance Systems (ADAS) solutions in India, marking its entry into intelligent mobility and automotive safety technologies.The collaboration will bring globally proven ADAS technologies to India, customised for local road conditions and mobility needs. It will strengthen Dhoot Transmission’s existing electronics portfolio and support its long-term focus on next-generation automotive electronics.Naveen Kumar, CEO – India, Wiring Harness and Electronics, Dhoot Transmission, said the partnership combi..

Real Estate

02 Jun 2026

Dash Square Adds Ashley Study Furniture

Dash Square has expanded its furniture portfolio with a curated study furniture collection from Ashley Furniture Homestore. The range is designed for contemporary homes where work, study and creative activities increasingly require dedicated and well-planned spaces.The collection includes writing desks, executive workstations, storage-led study units and display shelving. It combines practicality, comfort and design to create workspaces that are functional as well as visually appealing.One setting features a light-toned desk with coordinated bookcases and storage cabinets, creating a bright an..