IN THE APPELLATE TRIBUNAL FOR ELECTRICITY (Appellate Jurisdiction)

APPEAL No. 85 of 2022 & IA No. 1810 of 2024 Dated: 26.05.2025 Present: Hon’ble Mr. Sandesh Kumar Sharma, Technical Member Hon’ble Mr. Virender Bhat, Judicial Member IN THE MATTER OF GI Hydro Private Limited (Formerly known as Gati Infrastructure Pvt. Ltd.)

Leged Platinum, 4^th Floor, Plot No. 20, Survey No. 12, Kothaguda, Kondapur, NA, Hyderabad, Telangana - 500084. …Appellant(s)

Vs.

1. Haryana Electricity Regulatory Commission Through Secretary, Bays No. 33-36, Sector-4, Panchkula- 134112 Haryana.

2. Haryana Power Purchase Centre Through Chief Engineer, Shakti Bhawan, Sector-6, Panchkula- Haryana 134109. ...Respondent(s)

Counsel for the Appellant(s) : Mr. Sanjay Sen, Sr. Adv.

Mr. Buddy A. Ranganadhan, Sr. Adv.

Mr. Tabrez Malawat Ms. Ankita Bafna Mr. Syed Hamza Counsel for the Respondent(s) : Mr. Raghujeet Singh Madan Ms. Sonia Madan Mr. Nitin Goyal Mr. Aditya Singh Mr. Aditya Singh Ms. Aditi Lakhanpal Ms. Ayushi Garg for R-2

JUDGEMENT

PER HON’BLE MR. SANDESH KUMAR SHARMA, TECHNICAL MEMBER

1. M/s. GI Hydro Private Limited (Formerly known as Gati Infrastructure Pvt. Ltd.) has filed the instant Appeal challenging the Order dated 23.02.2022 (in short “Impugned Order”), passed by the Haryana Electricity Regulatory Commission (“Commission” or “HERC”) in Case No. HERC/PRO-41/2018 (“Tariff Petition”).

Description of the Parties

2. The Appellant, GI Hydro Private Limited is a company incorporated under the Companies Act, 1956, inter-alia, set up 110 MW (2 X 55 MW) Chuzachen Hydro Electric Power Plant (in short “Project”), commissioned on Rangpo and Rongli Rivers in the East District of Sikkim.

3. The Commission is the Electricity Regulatory Commission of the State of Haryana, established under Section 82 of the Electricity Act. The Respondent Commission is the regulatory and adjudicatory body with respect to any disputes between generating companies and distribution and transmission licensees.

4. Respondent No. 2 is the Haryana Power Purchase Centre (in short “HPPC”), a Government of Haryana entity vested with powers to procure power from the generators and represents two State distribution licensees of the State of Haryana. HPPC has been procuring power from the Project, since 14.05.2018, on a long- term basis and the final tariff of the project has been determined by the Respondent Commission vide the Impugned Order.

Factual Matrix of the Case

5. An Implementation Agreement was executed on 14.11.2003, between Gati Investment Limited and the Government of Sikkim for a 110 MW (2x55 MW) hydro project on the Rangpo and Rongli rivers, approximately 20 km upstream of Rangpo Bazar in East Sikkim.

6. Gati Investment Limited was renamed Gati Infrastructure Limited on 26.07.2004, and subsequently renamed Gati Infrastructure Private Limited (GIPL)

on 15.03.2013.

7. On 30.11.2004, GIPL submitted a detailed project report for a 99 MW hydro project. The government of Sikkim approved the report on the same date. Environmental clearance from the Ministry of Environment and Forest was obtained on 09.09.2005. The Energy and Power Department of the Government of Sikkim granted techno-economic clearance for the project at an estimated cost of Rs. 448.76 crores, based on a 70:30 debt-equity ratio.

8. Construction commenced in October 2006, with the Scheduled Commercial Operation Date (in short “SCOD”) set for June 2009; however, project commissioning was delayed due to force majeure events beyond GIPL’s control.

9. Gati Infrastructure Private Limited (GIPL) signed a Long-Term Access Agreement with Power Grid Corporation of India on 09.08.2012. The project achieved COD on 18.05.2013, and the same was communicated to the Eastern Regional Load Despatch Centre. The completion cost at COD was Rs. 1,188.57 crores, higher than the initially estimated Rs. 651.50 crores due to various force majeure and uncontrollable events.

10. On 28.10.2016, GIPL offered to sell hydropower from the project to Haryana Power Purchase