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ELP – Infrastructure and Energy Digest – September 2019

Oct2019

Projects, Infrastructure & Energy

ELP - Infrastructure and Energy Digest - September 2019

This month’s digest covers significant decisions of the Supreme Court as regards grant of solatium and interest on lands acquired for national highways and the High Court of Andhra Pradesh on the Andhra Pradesh Government’s move to re-negotiate power purchase agreements. The digest also analyses a recent directive of the Appellate Tribunal for Electricity stipulating that no public hearing was required for approval of solar tariffs discovered in a competitive bidding process.

Additionally, we have discussed the Ministry of Power’s recent move as regards stressed coal-fired power stations which aims to check possible misuse of the rescue package. Certain steps initiated by the Ministry of New and Renewable Energy such as (i) provision of a time frame for release of performance bank guarantees in cases where solar or wind power plants have been commissioned, (ii) exemption of Bureau of Indian Standards certification for replacement of solar modules in old projects and (iii) setting up set up a Dispute Resolution Mechanism to consider unforeseen disputes between solar and wind power developers and the Solar Energy Corporation of India and the National Thermal Power Corporation have also been analysed in detail.

In relation to the safeguard duty, we have examined the order of the Karnataka Electricity Regulatory Commission stating that the imposition of safeguard duty is to be treated as ‘Change in Law’. Separately, we have also discussed an order of the Maharashtra Electricity Regulatory Commission directing the Maharashtra State Electricity Distribution Company Limited to grant open access and issue Generation Credit Notes to captive wind energy generators. The Central Electricity Regulatory Commission (Power System Development Fund) Regulations, 2019 which were notified recently for creation of necessary infrastructure and necessary transmission systems of strategic importance have also been evaluated in the digest.

For each section, we have attempted to prepare and respond to the relevant questions so as to help the reader derive a quick yet holistic understanding of the issue at hand. We hope you find the content insightful and look forward to your feedback.

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