Petition Seeking Payment of Change in Law Compensation from SECI as a Consequence of Imposition of Safeguard Duty

IN THE MATTER OF: Petition under section 79(1)(f) read with section 79(1)(k) of the Electricity Act, 2003 along with Regulation 68 and 111-113 of the Central Electricity Regulatory Commission (Conduct of Business) Regulations, 1994 seeking payment of Change in Law compensation from Solar Energy Corporation of India limited as a consequence of imposition of Safeguard Duty by the Central Government and the same being treated as an event of Change in Law under the terms of the Power Purchase Agreement dated 04.01.2019 read with Ministry of New and Renewable Energy directions dated 12.03.2020 and 23.03.2020.

The Commission notes that as per definition of Commercial Operation Date (COD) provided in Article 1 of the PPA, COD will be the date on which the commissioning certificate is issued upon successful commissioning (as per provisions of the Agreement including but not limited to the witnessing of commission by the Committee Constituted by MNRE/SECI) of the full capacity of the Project or the last part capacity of the Project as the case may be (if Applicable). Accordingly, the Commission holds that the liability of payment on account of imposition of Safeguard duty on procurement of Solar PV panels and associated equipment by the Petitioners shall lie with the Respondents till the Commercial Operation Date (COD) only.

In view of above the Petition No. 81/MP/2020 stands disposed of in terms of the finding mentioned in paragraphs 52 and 55 of this order.