MADHYA PRADESH POWER MANAGEMENT CO. LTD. & ANR. M/S DHAR WIND POWER PROJECTS PVT. LTD. & ORS. versus M/S DHAR WIND POWER PROJECTS PVT. LTD. & ORS.

MADHYA PRADESH POWER MANAGEMENT CO. LTD. & ANR. M/S DHAR WIND POWER PROJECTS PVT. LTD. & ORS. versus M/S DHAR WIND POWER PROJECTS PVT. LTD. & ORS.

The applicable tariff for the first respondent's project is governed by the actual date of commissioning, evidenced by SLDC data showing power injection occurred on 1 April 2016; the Tariff Order dated 17 March 2016 applies at Rs 4.78 per unit, and the project is entitled to parity of treatment with other projects commissioned during that control period. Orders of the High Court directing PPA at the higher tariff are set aside.

Parties
Appellant: Madhya Pradesh Power Management Co. Ltd.; Respondent: M/S Dhar Wind Power Projects Pvt. Ltd.; Respondent: Others
Jurisdiction
India
Judgment Date
25 July 2019
Procedural Posture
Civil Appeal / Final Decision on Appeals
Outcome
Appeals partly allowed; impugned High Court orders set aside
Legal Topics
Tariff Determination, Power Purchase Agreement, Regulatory Commission Orders, Commissioning Criteria, Control Period, Parity of Treatment
Electricity Law Administrative Law Tariff Determination Power Purchase Agreement Regulatory Commission Orders Commissioning Criteria Control Period Parity of Treatment

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Parties

Madhya Pradesh Power Management Co. Ltd.

Appellant

M/S Dhar Wind Power Projects Pvt. Ltd.

Respondent

Others

Respondent

Procedural Posture

Civil Appeal / Final Decision on Appeals

Legal Issues

  1. 1 Whether the first respondent's wind power project was commissioned before or after 1 April 2016
  2. 2 Which tariff order applies to the first respondent's project
  3. 3 Whether the High Court was correct in directing execution of PPA at the higher tariff

Ratio Decidendi

The applicable tariff for the first respondent's project is governed by the actual date of commissioning, evidenced by SLDC data showing power injection occurred on 1 April 2016; the Tariff Order dated 17 March 2016 applies at Rs 4.78 per unit, and the project is entitled to parity of treatment with other projects commissioned during that control period. Orders of the High Court directing PPA at the higher tariff are set aside.

Court Disposition

Appeals partly allowed; impugned High Court orders set aside

Orders

  • First respondent entitled to benefit of Tariff Order dated 17 March 2016 (Rs 4.78/unit for 25 years)
  • Appellants to process application for execution of a PPA on that basis with effect from 1 April 2016