NTPC Limited vs EG Solwin Renewables Private Limited

Headnote Court Copy Facts Arguments Court observation Judicial Analysis Case Map Category Hierarchy Table of Content

2026 Supreme(Online)(CERC) 215

CENTRAL ELECTRICITY REGULATORY COMMISSION
Ramesh Babu V., Member, Harish Dudani, Member, Ravinder Singh Dhillon, Member
NTPC Limited – Appellant
Versus
EG Solwin Renewables Private Limited – Respondent
Petition No. 774/AT/2025

Important Points

Under Section 63 of the Electricity Act, 2003, the Regulatory Commission must adopt a tariff discovered through a transparent competitive bidding process that aligns with government guidelines, provided the rates are reasonable, market-competitive, and the procedure adheres to regulatory stipulations and timelines.

Subject

Energy Law - Electricity Tariff Regulation

Act Referred

Electricity Act, 2003: S.63, S.62, S.61(h), S.79, S.3
Trading License Regulations, 2020: Reg.8(1)(d), Reg.8(1)(f), Reg.9(10)
Electricity (Late Payment Surcharge and Related Matters) Rules, 2022

Headnote

(A) Electricity Act, 2003 - Section 63 - Determination of tariff by bidding process - Competitive Bidding Guidelines for procurement of power - Regulatory Commission's mandate to adopt tariff if bidding is transparent - Requirement to approach Commission within 15 days of tariff discovery - Adherence to procedural timelines and reasonableness of market-discovered rates is essential for regulatory approval. (Paras 9, 10, 12, 22)

(B) Trading License Regulations, 2020 - Regulation 8(1)(d) and 8(1)(f) - Trading margin for long-term contracts - Parties have autonomy to mutually decide trading margin - Exception stipulates if escrow or irrevocable, unconditional and revolving letter of credit is not provided, margin shall not exceed cap of 2 paise/kWh. (Paras 33, 34, 35, 36)

Facts of the case:
An intermediary procurer conducted a competitive bidding process for the procurement of hybrid power. Following the e-reverse auction and issuance of letters of award to successful developers, a petition was filed before the Commission for the adoption of the discovered tariff. The petitioner also sought approval for a trading margin and requested flexibility regarding the allocation of capacity under a greenshoe option to be finalized in the future, while citing market competitiveness compared to previous similar tenders.

Findings of Court:
The commission observed that the bidding process complied with the notified guidelines. Despite a delay in filing the petition, the court found the discovered tariffs were consistent with prevailing market benchmarks and objectively lower than similar recent tenders. The Commission held that the adoption of the tariff for the capacity identified is appropriate, while leaving the greenshoe option open for future submission per regulatory compliance. The trading margin for the long-term contract is to be governed by the power sale agreement, subject to existing regulatory caps if security mechanisms are absent.

Issues: Whether the competitive bidding process for the procurement of electricity was transparent and conducted in compliance with government guidelines, and whether the discovered tariff and proposed trading margin are eligible for regulatory adoption under the governing legislation.

Ratio Decidendi: The Commission is duty-bound under the statute to adopt a tariff if it is transparently discovered through a bidding process that adheres to central government guidelines. When such tariffs are proved to be market-competitive and the procedural requirements are satisfied, the Commission must formalize them for the long-term procurement of power. Result : Petition disposed of with tariff adopted for the identified projects.

Advocates:
For the Appellants/Petitioners: Shikha Ohri, Kartik Sharma, Harsh Dev Singh

Table of Content
1. prayer for tariff adoption under section 63 of electricity act. (Para 1 , 2 , 3)
2. procedural compliance and verification of competitive bidding process. (Para 4 , 5 , 6 , 14 , 15 , 16 , 17 , 18 , 19 , 20)
3. statutory requirements for tariff adoption under section 63. (Para 9 , 10 , 11 , 12 , 13 , 21 , 22)
4. evaluation of tariff reasonableness and market competitiveness. (Para 23 , 24 , 25 , 26 , 27 , 28)
5. regulatory framework for trading margin in back-to-back contracts. (Para 32 , 33 , 34 , 35 , 36 , 37)

IN THE MATTER OF:

Petition under Section 63 of the Electricity Act, 2003 for adoption of tariff of 1200 MW Wind-solar hybrid power projects with Greenshoe option of additional capacity upto 600 MW connected to the Inter-State Transmission System (ISTS) and selected through a competitive bidding process as per the Guidelines dated 21.08.2023 of the Ministry of Power, Government of India as amended from time to time

AND IN THE MATTER OF:

NTPC Limited

NTPC Bhawan,

Core – 7, Scope Complex,

7, Institutional Area, Lodhi Road,

New Delhi – 110003

…Petitioner

Versus

1 M/s EG Solwin Renewables Private Limited

Road No. 10, Banjara Hills, Khairatabad,

Hyderabad, Telangana – 500034

2 M/s Welspun Renewable Energy Private Limited

D-Wing, 8th Floor, Trade World, BKT house,

Kamala Mills Compound, Senapati Bapat Marg, Lower Parel,

Mumbai, Maharashtra - 400013.

3 M/s NLC India Limited

Corporate Office, Block-1,

Neyveli Township,

Cuddalore District, Tamil Nadu – 607801.

4 M/s Adani Renewable Energy Holding Twelve Limited

Adani Corporate House, 4th Floor-South Wing, Shantigram

Near Vaishno Devi Circle, S.G. Highway, Khodiyar

Ahmedabad, Gujarat – 382421.

…. Respondents

Parties present: Ms. Shikha Ohri, Advocate, NTPCL

Shri Kartik Sharma, Advocate, NTPCL

Shri Harsh Dev Singh, Advocate, NTPCL

आदेश/ ORDER

1. The Petitioner, NTPC Limited (NTPC), has filed the present Petition under Section 63 of the Electricity Act, 2003 (the Act) seeking adoption of tariff discovered through a transparent Competitive Bidding Process for procurement of 1200 MW Wind-Solar Hybrid Power Projects with Greenshoe Option of additional capacity up to 600 MW connected to the Inter-State Transmission System (ISTS) under the Greenshoe Option. The said capacity was selected through the tariff based competitive bidding process in accordance with the Guidelines for Tariff Based Competitive Bidding Process for Procurement of Power from Grid Connected Wind-Solar Hybrid Projects notified by the Ministry of Power, Government of India, dated 21.08.2023 as amended from time to time (the Competitive Bidding Hybrid Guidelines, 2023).

2. NTPC has made the following prayers:

a) Adopt the tariff discovered in the tariff based competitive bid process for the power projects as stated above on the terms and conditions contained in the LoAs dated 27.06.2025 issued to the successful bidders, and;

b) Approve the trading margin of INR 0.07/kWh;

c) And pass any other order that this Hon’ble Commission may deem fit.”

Submission of NTPC (the Petitioner):

3. NTPC, has submitted as under:

a) NTPC was designated as an Intermediary Procurer/ Renewable Energy Implementing Agency (REIA) by the Ministry of New and Renewable Energy (MNRE), Government of India, vide Office Memorandum No. 283/24/2023-GRID SOLAR, dated 31.03.2023 and OM ref no.-283/24/2023-GRID SOLAR dated 24.06.2024 for enabling procurement of Wind-Solar Hybrid Projects from ISTS- connected Renewable Energy Projects, through a tariff-based competitive bidding process conducted in accordance with the Competitive Bidding Hybrid Guidelines, 2023 issued by the Ministry of Power, Government of India.

b) On 30.10.2024, NTPC invited online bids by issuing the Request for Selection No. NTPC/RE-CS/2024-25/HYBRID-03 (RfS) along with standard draft of PPA and PSA documents for setting up of 1200 MW ISTS connected Wind Solar Hybrid Projects, as per the Competitive Bidding Hybrid Guidelines, 2023. The RfS further provided for a Greenshoe Option for addi