The Central Electricity Regulatory Commission has announced its ruling in a case that involved Adani Green Energy Limited (AGEL) and Power Grid Corporation Limited (PGCIL).
The case was about three of Adani’s projects – a 500 MW wind project, 1,000 MW wind project, and another 750 MW solar project. AGEL had applied to PGICL for long-term open access (LTA) and transmission services agreement (TSA) for these projects. Also, AGEL had submitted bank guarantees for these applications as well.
However, AGEL has argued that it was granted LTA without taking into account its evacuation optimization proposal, which it had submitted to PGCIL.
Further, AGEL had requested the CERC for the following:
a) Set aside the notice issued by the PGCIL for signing the long-term access and transmission services agreement within 15 days from the date of notices, i.e., by January 20, 2018;
b) Direct PGCIL to allow a reasonable time extension, of not less than six months, for signing the LTA and TS agreements;
c) Direct PGCIL to consider the optimized evacuation system for its projects, for which connectivity has already been granted before insisting for signing the LTA and TSA;
After analyzing arguments from AGEL and PGCIL, the commission dismissed the request of AGEL stating the following:
a) “With regard to petitioner’s prayers seeking to set aside notice dated 5.1.2018 for signing the LTA and TSA and seeking not less than six months’ time extension to sign the LTA and TS Agreements, the issues have become infructuous.”
b) “The petitioner’s prayer for direction to CTU for optimized evacuation system has become infructuous.”
c) “The bank guarantee in respect of the petitioner provided against LTA granted shall be returned by the CTU. The petitioner shall be required to apply for Stage- II connectivity and LTA as per the procedure, which shall be treated as per law.”
Concerning the bank guarantee deposited by AGEL, the following was the decision of the CERC:
“For cases where the applicant is a deemed Stage-I grantee and LTA has been granted without Stage-II connectivity, and no system strengthening for the applicant has been initiated, the CTU shall return the application bank guarantee if requested by the applicant. Such applicants shall be required to apply for Stage-II Connectivity and LTA as per procedures, which shall be treated as per law.”
Adani Green recently reported that in FY 2019, its revenue stood at ₹20.58 billion ($295 million) from the earlier ₹14.8 billion ($212 million), up 39% year-over-year (YoY). While just in the fourth quarter, the revenues saw a rise of 68% compared to the same quarter of 2018.
Earlier, AGEL also announced the acquisition of a 51% equity share capital in Kodangal Solar Parks Private Limited (KSPPL), comprising a 20 MW solar project which was incorporated back in August 2015.
