- The key ruling includes multiple cases involving over 34 solar developers filed by petitioners to resolve the issue.
- The complications of a treaty and interpretation law change event have been set out in detail by this order.
In a detailed 97-page order, the Central Electricity Regulatory Commission issued an order that includes multiple petitions from 34 solar power developers, SECI itself, and includes several discoms across the country. The CERC was forced to switch to this format because the requests were by and large the same and had to be clarified for reasons of clarity and to avoid further redundant arguments. Below we list the key issues identified and summarized by the CERC, followed by the Commission's responses to each. The contract was approved by a 4-person commission of the commission chaired by PK Pujari, chairman. Given the length and complexity of the topics involved, and in the interest of timely publication, we will hold back on adding analysis to this order, as some of our readers always wish. Click here to view or download the full order.
Issue No. 1: Is the pension method proposed by the SECI fair and equitable and can it be approved?
- The discount rate for the pension payments is 10.41% on the expenses incurred by the SPDs due to changes in the law (GST laws or security levies).
- The liability of SECI / Discoms for “monthly pension payments” begins on the 60th (sixtieth) day from the date of the order in the respective petitions or from the date of the filing of claims by the Respondent (SPDs), whichever is later entry. In the event of a delay in monthly annuity payment beyond the 60th (sixtieth) day from the date of the order in the respective applications or from the date of filing claims by the Respondent
(SPDs), depending on which time occurs later, surcharge for the delayed deadline. corresponding to each of these late monthly annuity payments is / are payable in accordance with the relevant PPAs / PSAs.
- The “Tenure of Annuity Payments” is 13 years.
The pension payment liability is part of the existing payment security mechanism, as provided for in the PPAs and already established in the context of the PPAs through suitable provision for pension payments.
Issue No. 2: Whether interest costs for customs bonds, which are carried out by some SPDs, fall under the change in the law and whether they can be collected as a separate element as a lump sum?
- The prayer of the SPDs that the interest on customs bonds should be covered by the change in the law and paid as a lump sum as a separate element is not permitted. The actual outflow of funds (due to the levying of security levies) for which the bonds were executed is
Due and claims to a change in the law in the direction of the duty to protect are regulated by orders in the petitions in which the matter was decided.
Issue no. 3rd: Does the deadline for payment of GST / Safeguard Duty claims need to be clarified in relation to orders issued by this Commission?
- Key date for claims for protection: The invoices in connection with the delivery of the goods can only be issued until cash on delivery for all devices installed and included in the network according to the project's nominal performance.
- Key date for GST complaints: The invoices in connection with the delivery of the goods can only be issued until cash on delivery for all devices installed and included in the network according to the project's nominal performance. In the case of the provision of services in connection with purchased goods by cash on delivery, the invoices must be issued within 30 days of the provision of this service, but not later than 30 days after cash on delivery.
Issue No. 4: Are there any taxes and duties imposed by the relevant government in connection with the monthly pension payment and whether these should in fact be allowed to pass through?
- The SPDs have to pay all legal taxes, levies, levies and cases, etc. For monthly annuity payments that may be payable under the terms of PPAs.
Issue No. 5: Can the principles set out in this petition apply to all ongoing petitions on GST and the duty to protect that are pending before this Commission?
- Since the pending petitions have not been tagged with the current petitions, no general decree can be issued.