The Haryana Electricity Regulatory Commission (HERC) has issued a final order approving the execution of Power Purchase Agreements (PPAs) for solar power projects totaling 5 MW at a revised tariff of ₹2.99/kWh. The decision, dated May 13, 2025, resolves a long-standing dispute between the Haryana Power Purchase Centre (HPPC) and a group of six independent developers. This ruling follows a remand from the Appellate Tribunal for Electricity (APTEL) under its September 3, 2024, judgment in APL No. 208/2017, which overturned the Commission’s earlier rejection of the projects.
The Conflict: Judicial History and APL No. 208/2017
The dispute originated from a 2015 competitive bidding process initiated by HPPC to procure 150 MW of solar power. Following the discovery of a ₹5.00/kWh tariff, HPPC issued Letters of Intent (LOIs) to successful bidders. However, in 2016, HERC declined to approve the PPAs (Petition No. 9 of 2016). The Chairman of the Commission utilized a casting vote to reject the petition, citing non-compliance with Section 63 guidelines of the Electricity Act, 2003, a lack of transparency, and the inclusion of deviations that had not received prior regulatory approval.
A dissenting member of the Commission argued that since no specific Ministry of New and Renewable Energy (MNRE) guidelines existed at the time of the tender, the process could not be invalidated based on non-compliance with non-existent standards. Upon appeal, APTEL found HERC’s original rejection to be erroneous, noting that the bidders had participated in good faith.
“Hence, we find the impugned order of the Commission absolutely erroneous which cannot be sustained. The same is hereby set aside. The appeal stands allowed. The case is remanded back to the Commission with the direction to issue a fresh order thereby approving the PPAs signed between the appellant and the 2nd respondent.”
The Ruling: HERC Remand Decision and Approved Tariff
In the remand proceedings (Case No. HERC/Petition No. 68 of 2024), HERC identified a procedural discrepancy in the APTEL judgment: while the Tribunal directed the approval of “signed PPAs,” only LOIs had been executed. To resolve the matter, HPPC proposed that it would forgo a stay on the APTEL order if developers agreed to match the lowest discovered tariff in the latest bidding conducted by HPPC.
While the developers originally sought the 2015 rate of ₹5.00/kWh, they eventually agreed to the revised rate of ₹2.99/kWh. One developer, Ms. Geeta Rani, continued to argue for the higher ₹5.00/kWh rate. However, the Commission noted that she failed to provide requested documentation to substantiate project progress, including payment proof for land, expenditure records for civil works, and module procurement details. The Commission further observed that the company incorporated by Ms. Rani for the project, Royalton Solar Private Limited, currently holds a “strike-off” status. Consequently, HERC mandated that all developers, including Ms. Rani, match the ₹2.99/kWh tariff.
The Commission noted that HPPC has filed a Civil Appeal (No. 12223/2024) in the Supreme Court of India challenging the APTEL judgment, which remains pending.
Technical Details and Execution Conditions
The Commission, comprising Shri Nand Lal Sharma (Chairman) and Shri Mukesh Garg (Member), granted the developers permission to incorporate new project companies for project execution, as permitted under Clause 2.9 of the original 2015 Notice Inviting Tender (NIT). HPPC is directed to execute formal PPAs with the following independent developers:
- Virender Rawal
- Karan Singh
- Anita Singh
- Geeta Rani
- Deepak Goyal
- Jile Singh
Project Capacity and Financial Terms
The following parameters define the final terms of the remand order:
- Total Project Capacity: 5 MW.
- Approved Tariff: ₹2.99/kWh.
- Effective Remand Order Date: May 13, 2025.
- Relevant Legal Reference: APL No. 208/2017.
Leave a Comment