Punjab Commission Dismisses Solar Firm鈥檚 Compensation Plea

31 Jan 2025 CW Team

Petitioner SAEL Solar Solutions had entered into a power purchase agreement (PPA) with Punjab State Power Corporation (PSPCL) on June 21, 2022, to supply 50 MW of power at a tariff of Rs 2.65 or $0.031) per unit.

It filed a petition to get compensation on account of a 鈥榗hange in law鈥� because of an increase in CGST for solar cells from 5% to 12%. Per the PPA, a 鈥榗hange in law鈥� is deemed to have occurred when any event increases or decreases project costs. The change in law notice must be sent within 60 days from the date of occurrence. The petitioner also submitted that it was entitled to carrying costs because of rising capital expenditure, which increased debt and equity requirements.

PSPCL argued for SAEL鈥檚 plea to be dismissed. The petitioner issued the 鈥榗hange in law鈥� notice in November 2022, after 60 days from signing the PPA. The Commission observed that the central tax rate change, which was issued in September 2021, before the e-reverse auction process of the bidding conducted on October 22, 2021, cannot be considered a 鈥榗hange in law鈥� under the PPA.

It noted that the petitioner鈥檚 notice to PSPCL did not fulfill the 60 days from the 鈥榗hange in law鈥� event鈥� time limit even from the PPA date. Additionally, it did not contain details of the 鈥榗hange in law鈥� and its effect on project costs. The notice also did not include supporting documentary evidence.

The Commission dismissed the petitioner鈥檚 request for a grant of carrying cost and interest on it. In September 2024, PSERC issued separate additional surcharge rates for full and partial open access power consumers. It approved a surcharge of Rs 1.29 or $0.015/kWh for both full and partial open access consumers, including those utilizing green energy, for using open access beyond the contract demand maintained with the distribution licensee.

Punjab State Electricity Regulatory Commission (PSERC) has rejected a solar power company鈥檚 plea seeking compensation to offset the financial and commercial impact of increasing central goods and services taxes (CGST) on solar cells. Petitioner SAEL Solar Solutions had entered into a power purchase agreement (PPA) with Punjab State Power Corporation (PSPCL) on June 21, 2022, to supply 50 MW of power at a tariff of Rs 2.65 or $0.031) per unit. It filed a petition to get compensation on account of a 鈥榗hange in law鈥� because of an increase in CGST for solar cells from 5% to 12%. Per the PPA, a 鈥榗hange in law鈥� is deemed to have occurred when any event increases or decreases project costs. The change in law notice must be sent within 60 days from the date of occurrence. The petitioner also submitted that it was entitled to carrying costs because of rising capital expenditure, which increased debt and equity requirements. PSPCL argued for SAEL鈥檚 plea to be dismissed. The petitioner issued the 鈥榗hange in law鈥� notice in November 2022, after 60 days from signing the PPA. The Commission observed that the central tax rate change, which was issued in September 2021, before the e-reverse auction process of the bidding conducted on October 22, 2021, cannot be considered a 鈥榗hange in law鈥� under the PPA. It noted that the petitioner鈥檚 notice to PSPCL did not fulfill the 60 days from the 鈥榗hange in law鈥� event鈥� time limit even from the PPA date. Additionally, it did not contain details of the 鈥榗hange in law鈥� and its effect on project costs. The notice also did not include supporting documentary evidence. The Commission dismissed the petitioner鈥檚 request for a grant of carrying cost and interest on it. In September 2024, PSERC issued separate additional surcharge rates for full and partial open access power consumers. It approved a surcharge of Rs 1.29 or $0.015/kWh for both full and partial open access consumers, including those utilizing green energy, for using open access beyond the contract demand maintained with the distribution licensee.

Infrastructure Urban

16 May 2025

3i Infotech Reports Rs 7.25 Bn Revenue for FY25

3i Infotech, a leading provider of digital transformation, technology services and technology solutions, announced its consolidated financial results for the fourth quarter and full year FY25, ended on March 31st, 2025. The company maintained its growth momentum, displaying consistent progress for the 3rd consecutive quarter.In Q4 FY25, 3i Infotech reported revenue of Rs 1.87 billion, reflecting steady performance compared to Rs 1.81 billion in Q3 FY25 and Rs 1.97 billion in Q4 FY24. The company delivered strong profitability improvements, with gross margin growing by 14.8 per cent Q-o-Q and 1..

Infrastructure Urban

16 May 2025

Emerald Finance Joins Baya PTE to Boost SME Bill Discounting

Emerald Finance is a dynamic company offering a spectrum of financial products and services including its flagship Earned Wage Access (EWA) in India, has entered into a strategic partnership with Singapore-based Baya PTE through its Indian subsidiary. This collaboration aims to strengthen bill discounting services for Small and Medium Enterprises (SMEs), enabling faster access to working capital and improved cash flow management.The initiative is designed to support SMEs that supply to large corporates such as JSW Steel, Delhivery, and PVR INOX, among others. By facilitating timely invoice dis..

Infrastructure Urban

16 May 2025

BLS E-Services Crosses Rs 5 Bn Revenue Mark in FY25

BLS E-Services, a technology-enabled digital service provider, announced its audited consolidated financial results for the quarter and full year period ended 31 March 2025.Speaking about the performance and recent updates, Shikhar Aggarwal, Chairman, BLS E- Services said, 鈥淲e are delighted to report a remarkable performance in FY25, as we achieved several milestones during the fiscal year. FY25 marked our highest-ever financial performance, as we surpassed Rs 5 billion milestone in Total Income during the year, which was reported at Rs 5.45 billion, a notable YoY growth of 76 per cent. The ..