Four petitioners – ReNew Solar Power, Phelan Energy India RJ Pvt. Limited, Clean Sustainable Energy Pvt Ltd, and Mahoba Solar (UP) Pvt Limited.
These companies had filed the petition against SECI, BSES Yamuna Power Limited, Jaipur Vidyut Vitran Nigam Ltd, and Ajmer Vidyut Vitran Nigam Ltd, and Jodhpur Vidyut Vitran Nigam Ltd, with the Central Electricity Regulatory Commission (CERC) for relief, seeking compensation of the safeguard duty on the imports of solar cells and modules.
“Such imposition of safeguard duty may result in an increase in non-recurring expenditure as well, if certain modules are imported as a part of O&M up to July 30, 2020,” states the petition.
The four petitioners have asked for lump sum compensation of ₹739.5 million to be paid to the petitioner on account of the additional levy of safeguard duty and IGST on importing solar cells, along with interest.
They have requested CERC to direct the SECI to pay within 60 days from the date a claim was filed by the petitioner, failing which it will attract late payment surcharge as provided under PPA.
SECI had selected ReNew Solar Power, Phelan Energy India RJ Pvt. Limited, Clean Sustainable Energy Pvt Lit, and Mahoba Solar to develop solar projects in Rajasthan’s Bhadla Solar Park.
The CERC has passed an order that will give compensation relief from the safeguard duty to four developers after they petitioned the commission citing the Change in Law clause.
The clause recognizes contracts that are already in force when a law change occurs, like in the case of the safeguard duty.
Reference- Mercom India, Economic Times