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2026 Supreme(Online)(CERC) 201
CENTRAL ELECTRICITY REGULATORY COMMISSION
Jishnu Barua, Chairperson, Ramesh Babu V., Member, Harish Dudani, Member, Ravinder Singh Dhillon, Member
Solar Energy Corporation of India Limited – Appellant
Versus
Indian Renewable Energy Development Agency Limited – Respondent
Petition No 617/AT/2025
For the Appellants/Petitioners: M. G. Ramachandran, Anushree Bardhan, Ritika Singh, Dalima Gupta, Srishti Khindaria, Aneesh Bajaj
The Commission must adopt tariffs determined through transparent competitive bidding as per statutory guidelines. Post-bid adjustments to tariff parameters are impermissible; changes in law impacting costs are separate events to be adjudicated independently to maintain the sanctity of the competitive process.
Headnote:(A) Electricity Act, 2003 - Section 63 - Tariff-based competitive bidding - Adoption of tariff - Role of Commission - The Commission is required to adopt the tariff if such tariff has been determined through a transparent process of bidding in accordance with the guidelines issued by the Central Government. (Para 12)
(B) Administrative Law - Policy guidelines - Power to remove difficulties - Authority of the executive to relax norms - A designated authority may make amendments or grant relaxations for better implementation of a scheme provided it does not increase financial requirements or violate the sanctity of the bidding process. (Paras 26, 27 and 28)
(C) Contract Law - Change in Law - Impact on tariff - Post-bidding alterations to tariff parameters undermine the sanctity of the competitive process; however, relief for Change in Law events may be sought through separate proceedings in accordance with the terms of the signed agreements. (Paras 33, 34 and 35)
Facts of the case:
The petitioner sought the adoption of usage charges for a large-scale power project involving multiple locations, claiming the tariff was discovered via a competitive bidding process. The petitioner had initially failed to secure the bid in a reverse auction but was later awarded the project capacity by the government at the lowest discovered rate, matching the bid parameters of the successful developer. Subsequent to the bidding, tax rates were increased, leading to a revision of ceiling tariffs by the government.
Findings of Court:
The Commission noted that while the initial bidding process was transparent, the subsequent allocation of capacity exceeding the standard limit was justified under specific powers bestowed upon the ministry to remove implementation difficulties. The court affirmed that the original bid parameters must form the basis for tariff adoption to maintain process integrity.
Issues: The primary issues were whether the Commission could adopt a tariff based on a post-bidding allocation exceeding standard capacity limits and whether the upward revision of usage charges due to tax variations could be incorporated into the adoption order.
Ratio Decidendi: The Commission held that while it can adopt a tariff derived from a transparent bidding process, any post-bid, non-competitive allocation must strictly follow the statutory or scheme-based power to remove difficulties. Usage charges must be fixed based on parameters prevalent at the time of bidding; subsequent tax-related changes constitute a separate 'change in law' event that requires independent adjudication rather than inclusion in the primary tariff adoption.
Result: Petition disposed of; base tariff adopted with liberty to approach for change in law relief.
| Table of Content |
|---|
| 1. petition for adoption of tariff discovered under cpsu scheme phase-ii. (Para 1 , 2 , 3 , 6 , 7 , 8 , 9) |
| 2. applicability of section 63 to tariff adopted via competitive bidding. (Para 10 , 11 , 12 , 13 , 14 , 15 , 16 , 17 , 18 , 19 , 20 , 21 , 22 , 23) |
| 3. mnre authority to relax scheme norms for project allocation. (Para 24 , 25 , 26 , 27 , 28 , 29 , 30) |
| 4. adoption of base tariff; change in law needs adjudication. (Para 31 , 32 , 33 , 34 , 35 , 36) |
In the matter of
Petition under Section 79 (1) (a) of the Electricity Act, 2003 read with Part VII of the Electricity Act, 2003 (Section 63) for Adoption of the Usage Charges for 1200 MW Solar Photovoltaic (PV) Power Station (Tranche-III) Connected to the Inter-State Transmission System (ISTS)/State Transmission System (STU) under Central Power Sector undertaking Scheme Phase-II as per the guidelines dated 5.3.2019 as amended on 13.4.2020 issued by the Central Government.
And
In the matter of:
Solar Energy Corporation of India Limited (SECI)
6th Floor, Plate-B, NBCC Office Block Tower-2,
East Kidwai Nagar
New Delhi-110023
... Petitioner
VERSUS
1. Indian Renewable Energy Development Agency Limited (IREDA)
Corporate office at 3rd Floor, August Kranti Bhawan,
Bhikaji Cama Place, New Delhi – 110066
2. Gujarat Urja Vikas Nigam Limited (GUVNL)
Sardar Patel Vidyut Bhavan, Race Course,
Vadodara-390007
3. Madhya Pradesh Power Management Company Limited (MPPMCL)
Block No. 11, Shakti Bhawan, Jabalpur-482008,
Madhya Pradesh
…Respondents
Parties Present:
Shri M. G. Ramachandran, Sr. Advocate, SECI
Ms. Anushree Bardhan, Advocate, SECI
Ms. Ritika Singh, Advocate, SECI
Ms. Dalima Gupta, Advocate, SECI
Ms. Srishti Khindaria, Advocate, SECI
Shri Aneesh Bajaj, Advocate, SECI
Shri Mudit Jain, SECI
ORDER
The Petitioner, Solar Energy Corporation of India Ltd (hereinafter referred to as “SECI”), has filed the present Petition under Section 63 of the Electricity Act, 2003 (“the Act”) for the adoption of the usage charges for the 1200 MW Solar Photovoltaic (PV) Power Station (Tranche III) connected with the Inter-State Transmission System (hereinafter referred to as “ISTS”) / State Transmission System ( hereinafter referred to as ‘STU”) selected through a competitive bidding process under the ‘Central Power Sector Undertaking Scheme Phase II (Government Producer Scheme) for setting up the 12,000 MW grid-connected Solar Photovoltaic (hereinafter referred to as “PV”) Power Projects by the Government Producers with Viability Gap Funding (hereinafter referred to as “VGF”) support for self-use or use by the Government/ Government entities, either directly or through the Distribution Companies’ dated 5.3.2019 (“CPSU Scheme Phase II”) and as per the “Guidelines for Tariff Based Competitive Bidding Process for Procurement of Power Grid Connected Solar PV Power Projects” (hereinafter referred to as “the Solar Guidelines”) dated 3.8.2017 issued by the Ministry of Power, Government of India.
The Petitioner has made the following prayers:
a. Adopt the usage charges of Rs 2.57/kWh with the VGF of Rs 44,72,000/- per MW, as per the L1 bidder tariff discovered in the competitive bid process, for 1200 MW of Solar PV Power Project to be established by SECI under the Central Power Sector Undertaking Scheme Phase-II (Tranche- III) as per the Guidelines dated 05.03.2019 as amended on 13.04.2020 and 10.05.2021 issued by the Central Government;
b. Pass any other or further order which this Hon’ble Commission may deem fit and proper in the facts and circumstances of this case.
Submissions of the Petitioner
2. The Petitioner, SECI, has mainly submitted as under:
2.1. The Petitioner, being a Generating Company within the scope of Section 2 (28) of the Electricity Act, 2003, has filed the present Petition under Section 79 (1)(a) of the Electricity Act,2003 read with Part VII of the Electricity Act, 2003 (Section 63) for adoption of the usage charges for 1200 MW Solar photovoltaic (PV) power station (TRANCHE-III)
