APTEL cited illegal bid price recovery process for Adani Green Energy | News Bharat

Table of Contents


  • The case once again highlights the misbehavior of state authorities in the power sector in Uttar Pradesh.
  • The win will be a significant boost for Adani Green Energy, with its 50 MW plot among the largest in the auction.

In a decision that is equally an indictment of almost all the bodies involved in Uttar Pradesh’s power sector. The Appellate Tribunal for Electricity (APTEL) has come down heavily on UP New Energy Development Authority (UPNEDA), UP Power Corporation Limited (UPPCL), UP Transmission Company Limited (UPTCL) and state regulator UPERC. In its order dated November 28, APTEL found grounds to define the actions of these state authorities as “arbitrary, unjust and illegal”. To find out why, read on.

The case involves UPNEDA’s invitation to bid for an RFP to supply 215 MW of solar power to the state by firms. Many firms made bids and eventually 15 were selected based on their bids. Bids for various capacities offered, the tariff quoted varied over a period of 12 years ranging from a low of Rs 7.02/kWh (of M/s Essel Infra Projects Ltd., Mumbai) to a high of Rs 8.60 /kWh (to M/s Sree Radhey-Radhey Ispal Pvt. Ltd., Kanpur). Adani Green Energy UP made its bid for 50 MW at Rs 8.44/kWh, while the other bidder in this case, Chennai-based Sahasradhara Energy, made its bid at Rs 8.37 for 5 MW capacity.

For Adani Green Energy, after receiving approval as a selected bidder, problems began when the state-owned transmission company took an unusually long time to secure transmission infrastructure for its 50 MW plant. Although the contract clearly stated otherwise in the event of such delays, the firm did not receive a formal extension of the project’s planned commissioning date and received a termination notice after the original date.

Meanwhile, a supply price of Rs.7.02/kWh was reached in negotiations with all the participants, which was accepted on 21.11.2017.

But for Adani Green, the delay proved costly as even that price was asked to be renegotiated after delays in project completion and “changed market conditions” encouraged the state regulator to remove any “unreasonable” advantage for the firm. To cut the story short, the state regulator effectively imposed a price of Rs 5.02/kWh (after first reducing it to Rs 5.07/kWh) for Adani Green Energy and Saharadhara. Bidding was not canceled outright, allegedly on the grounds that it would “spoil” the investment climate in the state.

The fact that the earlier tariff acceptance petition (No. 1110/2016) was filed by UPPCL and UPNEDA on 04.05.2016. It was finally decided twenty months later on 02/12/2018 it didn’t matter. Nor the fact that the state structures never gave a reason for the delays on their end.

The APTEL bench found this entire sequence jarring and hence the judgment that at least Adani Green Energy UP should have been given tariff parity with the 9 bidders who had already been given Rs 7.02/kWh contracts.

You can see the detailed judgment here.

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