IN THE APPELLATE TRIBUNAL FOR ELECTRICITY AT NEW DELHI APPELLATE JURISDICTION APL No. 363 OF 2022 & IA No. 1289 OF 2022 Dated: 17^th December, 2024 Present : Hon`ble Mr. Justice Ramesh Ranganathan, Chairperson Hon’ble Mr. Sandesh Kumar Sharma, Technical Member (Electricity)

In the matter of:

1. AMRELI POWER PROJECTS LTD.

Represented by Director

10th Floor, Sangeeta Complex, Near Parimal Crossing, Ellisbridge, Ahmedabad - 380006, Gujarat … Appellant No.1

2. BHAVNAGAR BIOMASS POWER PROJECTS PVT. LTD.

Represented by Director

10th Floor, Sangeeta Complex, Nr. Parimal Crossing, Ellisbridge, Ahmedabad - 380006, Gujarat … Appellant No.2

3. JUNAGADH POWER PROJECTS PVT.

LTD.

Represented by Director

10th Floor, Sangeeta Complex, Near Parimal Crossing, Ellisbridge, … Appellant No.3 Ahmedabad - 380006, Gujarat Versus

1. GUJARAT ELECTRICITY REGULATORY COMMISSION Through its Secretary 6th Floor, GIFT ONE, Road 5C, Zone 5, GIFT City, … Respondent No.1 Gandhinagar – 382355, Gujarat, India.

2. GUJARAT URJA VIKAS NIGAM LIMITED Through its CMD Shri K.P. Jangid, General Manager(Comm.)

Sardar Patel Vidyut Bhavan, Racecourse, Vadodara-390 007, Gujarat … Respondent No.2

3. STATE LOAD DESPATCH CENTRE Through its CMD Gujarat Energy Transmission Corporation Limited, 132kV Gotri Sub Station Compound, Near T.B. Hospital, Gotri Road, Vadodara 390021, Gujarat, India … Respondent No.3 Counsel on record for the Appellant(s) : Poonam Verma Sengupta for App. 1, 2 & 3 Counsel on record for the Respondent(s) : Suparna Srivastava for Res. 1 Anand K. Ganesan Swapna Seshadri Srishti Khindaria Harsha Manav for Res. 2 Abiha Zaidi for Res. 3

JUDGMENT

PER HON’BLE MR. JUSTICE RAMESH RANGANATHAN, CHAIRPERSON I. INTRODUCTION:

The origin of the present appeal is traceable to the notices dated

05.08.2020, issued by Gujarat Urja Vikas Nigam Limited (“GUVNL” for short) in terms of Article 9.2 of the PPAs, relating to the event of default on the part of the three Appellants-Biomass power project developers. The PPAs were entered into for generation and supply of electricity by use of agriculture residues / Biomass, a renewable power source, which entitled the Appellants to a higher preferential tariff. The three Biomass Plants of Abellon Clean Energy Ltd (i.e., the holding company of the Appellants) are, according to the appellants, the first Biomass based power projects in Gujarat established with the objective of processing and disposing of waste in a scientific manner, with electricity generation as a by-product. These bio-mass plants are said to be under shut down since August 2020.

The present Appeal has been filed challenging the Order passed by the Gujarat Electricity Regulatory Commission (the “GERC” for short) in Petition No.1888 of 2020 dated 13.7.2022. The said Petition was filed by the Appellants challenging the default notices dated 05.08.2020 issued by GUVNL under Article 9.2.1 and 9.3.1 of the Power Purchase Agreements (PPAs) dated 28.09.2010, alleging that the Appellants, by deliberately under-injected energy for a quantum lesser than the scheduled energy in FY 2018-19 and FY 2019-20 and making undue gain, had indulged in ‘gaming’. Under the said notices, GUVNL had called upon the Appellants to remedy their default within 30 days by refunding the wrongly recovered amounts, failing which GUVNL would terminate the PPAs dated

28.09.2010, and proceed to take other appropriate legal remedies.

During the pendency of proceedings in Petition No.1888 of 2020, the GERC passed interim Order dated 09.10.2020 (i) directing that the default notices dated 5.8.2020 shall not be implemented till the main Petition is decided by the Commission; (ii) directing the Appellants to refund 75% of the claimed differential amount to GUVNL within 15 days, subject to adjustment at the time of the final outcome of the Petition; and (iii) directing GUVNL to start buying power from the Appellants and pay the tariff, including past dues, if any, subject to the outcome of Petition No.1888 of 2020. The GERC also obse