Petition of GERC (Conduct of Business) Regulations of PPA and Change in Law Event – EQ
Summary:
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# ⚖️ Case Details
* **Forum:** Gujarat Electricity Regulatory Commission (GERC), Gandhinagar.
* **Petition No.:** 2200 of 2023.
* **Filed under:** Section 86(1)(f) of the Electricity Act, 2003 + Regulation 23 of GERC (Conduct of Business) Regulations, 2004 + Article 9 of the PPA dated 23.04.2021.
* **Subject:** Seeking **“In-Principle” declaration** that Notifications (19.10.2022 & 01.02.2023) under **Project Imports (Amendment) Regulations** qualify as a **Change in Law** event.
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# 👥 Parties
* **Petitioner:** Tata Power Saurya Limited
* Counsel: Ld. Adv. Suhael Buttan & Adv. Vedant Chaudhary.
* **Respondent:** Gujarat Urja Vikas Nigam Limited (GUVNL)
* Counsel: Ld. Adv. Utkarsh Singh with Mr. K. T. Shah.
* **Commission Members:** Mehul M. Gandhi & S. R. Pandey.
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# 📑 Arguments
### Petitioner (TPSL)
* PIR Notifications of **2022 & 2023 (Customs Amendments)** changed applicability of concessional duties, impacting project economics.
* Relied on **MERC’s Order (20.08.2024, Case 75/2023)** where similar PIR notifications were treated as Change in Law.
* Cited **Supreme Court Judgment (Nabha Power v. PSPCL, 2024)** – only a valid notification under Customs Tariff Act can qualify as law.
* Project commissioned on **18.03.2024** after SCOD extension by GUVNL till 31.03.2024 (Petition 2206/2023 withdrawn after settlement).
### Respondent (GUVNL)
* Distinguished MERC case: PPA clauses there differed, no pre-bid clarification, and relief mechanism not SCOD-limited.
* In current PPA, **pre-bid clarification disentitles Change in Law claims**.
* Will file written submissions on SC ruling and grounds for SCOD extensions.
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# 📅 Proceedings (Daily Order dated 10.09.2025)
1. Hearing held on **25.08.2025**.
2. Both parties presented oral arguments.
3. **Commission’s Observations:**
* Petition seeks in-principle declaration of PIR notifications as Change in Law.
* Petitioner has already filed written submissions.
* Respondent directed to file **written submissions within 3 weeks**, including SCOD extension rationale.
4. **Next Step:** Case to be **reserved for Order** once submissions complete.
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# 🔑 Implications
* **Key Issue:** Whether Customs Notifications restricting concessional import duty under PIR scheme constitute Change in Law.
* **Petitioner’s leverage:** Backed by MERC precedent + SC ruling.
* **Respondent’s defense:** Relies on **specific pre-bid clarification** in Gujarat tenders, limiting developer’s entitlement.
* **Status:** Awaiting GUVNL’s written submissions; matter will then be reserved for final order.
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