LexGUJARAT URJA VIKAS NIGAM LIMITED versus GREEN INFRA CORPORATE WIND PRIVATE LIMITED AND OTHERS ETC.
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[2025] 8 S.C.R. 345 : 2025 INSC 922 Gujarat Urja Vikas Nigam Limited v. Green Infra Corporate Wind Private Limited and Others Etc. (Civil Appeal No(s). 14098-14101 of 2015) 04 August 2025 [Sanjay Kumar* and Satish Chandra Sharma, JJ.] Issue for Consideration Whether the four respondent companies were entitled to approach the Gujarat Electricity Regulatory Commission (GERC) for determination of the tariff for procurement of power by Appellant-GUVNL from their wind energy projects. Headnotes† Electricity Act, 2003 – ss.61, 62, 64, 86 – Income Tax Act, 1961 – s.32 – Power Purchase Agreements (PPAs) entered into between GUVNL and the respondent companies containing a clause w.r.t the tariff applicable for purchase of power from the respondent companies’ wind energy projects – Respondent companies approached the GERC seeking project-wise determination of tariff, claiming that they had not availed accelerated depreciation under the Income Tax Act, 1961 – Claim contested by GUVNL, arguing that they had willingly entered into PPAs and were bound to the tariff rate of ₹3.56 per kWh, and therefore, could not seek determination of tariff on a case-to-case basis – GERC decided the issue in favour of respondent companies – Order confirmed by the APTEL – Correctness: Held: GUVNL, an instrumentality of the State is bound to promote and give effect to the Government’s policy of encouraging generation of power from renewable energy sources – When the Government promulgated a policy in that regard, offering various incentives to wind energy projects, GUVNL cannot act contrary thereto by fixing a tariff for purchase of power from such wind energy projects contrary to the mandate of Order dated 30.01.2010 issued by GERC as per which the tariff of ₹3.56 per kWh was applicable only to those wind energy projects that availed the benefit of accelerated depreciation – * Author 346 [2025] 8 S.C.R. Supreme Court Reports It is not disputed that the four respondent companies did not avail such benefit – Thus, the question of applying to them the tariff that was only meant for wind energy projects that did avail accelerated depreciation would not arise – GUVNL cannot be guided only by its own commercial interests, like a private business entity and it’s conduct, as a State instrumentality, must be of the standard of a model citizen – It cannot contend that the respondent companies are estopped from seeking determination of tariff by the GERC as they had willingly signed PPAs with it at the tariff fixed for wind energy projects availing accelerated depreciation – As GUVNL failed to obtain commitments from the respondent companies that they would only avail accelerated depreciation at the time they had to choose that option, GUVNL has no indefeasible right to bind them to a tariff which was applicable only to such wind energy projects that availed accelerated depreciation – Orders passed by the GERC and the APTEL not interfered with – Income Tax Rules, 1962. [Paras 24, 25] Case Law Cited Gujarat Urja Vikas Nigam Limited v. Tarini Infrastructure Limited and Others [2016] 5 SCR 990 : (2016) 8 SCC 743 – relied on. Gujarat Urja Vikas Nigam Limited v. EMCO Limited and Another [2016] 1 SCR 857 : (2016) 11 SCC 182 – referred to. List of Acts Electricity Act, 2003; Income Tax Act, 1961; Income Tax Rules, 1962. List of Keywords Gujarat Electricity Regulatory Commission (GERC); Determination of the tariff; Gujarat Urja Vikas Nigam Limited (GUVNL); Procurement of power by GUVNL; Wind energy projects; Accelerated Depreciation; Procurement of power by distribution licensees; Project-wise determination of tariff; Determination of tariff on a case to case basis; Appellate Tribunal for Electricity (APTEL); Instrumentality of the State; State instrumentality; Renewable energy sources; Generation of power from renewable energy sources; Wind power, Solar power; National Electricity Policy; National Electricity Policy and Plan; Tariff policy; Ministry of New and Renewable Energy; Government of Gujarat; Wind Power Policy 2007; Non-conventional renewable energy; Normal depreciation; Gujarat Energy Development Agency (GEDA). [2025] 8 S.C.R. 347 Gujarat Urja Vikas Nigam Limited v. Green Infra Corporate Wind Private Limited and Others Etc. Case Arising From CIVIL APPELLATE JURISDICTION: Civil Appeal No(s). 14098- 14101 of 2015 From the Judgment and Order dated 28.09.2015 of the Appellate Tribunal for Electrici
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