J U D G M E NT

MR. RAKESH NATH, TECHNICAL MEMBER Appeal no. 235 of 2013 has been filed by Gujarat Urja Vikas Nigam Ltd (“GUVNL”) against the order dated 08.08.2013 passed by Gujarat Electricity Regulatory Commission (“State Commission”) in which it held that the Power Purchase Agreement (“PPA”) executed between the GUVNL and the Respondent no.2, a Solar Power Developer, is valid and enforceable. Appeal no. 291 of 2013 is the cross Appeal filed by the Millenium Synergy (Gujarat) Pvt. Ltd. hereinafter referred to as ‘Millenium Gujarat’, against the same impugned order on the interpretation of Article 4.1 (x) of the PPA made by the State Commission.

2. Millenium Gujarat entered into a PPA dated 29.05.2010 with GUVNL for generation and sale of electricity by establishing a 10 MW solar power project on terms and conditions contained in the PPA. Article 4.1 (x) of the PPA provides for restriction on the transfer of share of the Solar Power Developer that it shall continue to hold at least 51% of equity upto a period of 2 years after achieving Commercial Operation of the project. Clause 9.2.1 of the PPA provides for breach of Clause 4.1(x) as an Event of Default with consequences. The prin