The Appellate Tribunal for Electricity (Aptel) has set aside an order by the Tamil Nadu Electricity Regulatory Commission (TNERC) rejecting pleas by Adani Group firms for grant of a specific extension for their solar projects in order to avail a tariff of ₹7.01 per unit from the Tamil Nadu Generation and Distribution Corporation Limited (Tangedco).
In 2015, Kamuthi Solar Power Limited (KSPL) and Ramnad Renewable Energy Limited (RREL), arms of Adani Green Energy (Tamil Nadu) Limited had entered into separate energy purchase agreements with Tangedco. Both firms had proposed to set up solar photovoltaic (PV) plants with capacities of 216 MW and 72 MW respectively at Kamuthi taluk and Ramnad district.
On September 12, 2014, TNERC had issued a comprehensive tariff order for solar power and fixed a tariff of ₹7.01 per unit for Solar PV plants. It had extended the applicability of the tariff till March 31, 2016. The two firms had to complete their projects by March 31, 2016, to be eligible for the tariff of ₹7.01 per unit. The projects were commissioned only in September 2016, and Tangedco refused to pay the ₹7.01 per unit tariff and said it would offer a lower tariff of ₹5.10 per unit, which was applicable from April 1, 2016.
In their pleas before the TNERC, the firms said the projects were ready from their end well before March 31, 2016, but the commissioning was delayed due to the failure on the part of the Tangedco to provide the required infrastructural facilities for the evacuation of power.
KSPL and RREL had informed Tangedco that they had incurred ₹1,524 crore and ₹508 crore respectively for the projects. TNERC had ruled that Tangedco had been clear in its communications to the firms regarding the availability of infrastructure, and it did not find any mistake on the part of Tangedco, against which the firms moved an appeal before Aptel.
However, Aptel noted that there was failure on part of Tangedco to provide the evacuation facility in time (before March 31, 2016). It ruled that the solar PV plants proposed by the companies were commissioned within the control period, ending on March 31, 2016, and are entitled to a tariff of ₹7.01/unit from September 18, 2016, as per the notification issued by the TNERC.
