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Gujarat is India’s biggest solar power-producing state. Photo: Hemant Mishra/Mint
Gujarat is India’s biggest solar power-producing state. Photo: Hemant Mishra/Mint

Gujarat to appeal against solar-tariff cut rejection

Gujarat Urja Vikas Nigam Ltd filed a petition in May seeking to lower the tariff by 28%, citing excessive profits earned by plant owners

Mumbai: India’s biggest solar power-producing state, Gujarat, plans to file an appeal with regulators on their decision to reject a tariff cut for photovoltaic plants. The Gujarat Electricity Regulatory Commission will hear the appeal on 11 November, said Hemant Sahai, a lawyer representing solar developers that are fighting the state’s attempts to reduce the rate paid for power produced by their plants.

Gujarat Urja Vikas Nigam Ltd (GUVNL), the state power purchaser, filed a petition in May seeking to lower the tariff for solar power by 28%, citing the excessive profits earned by plant owners. The regulatory commission rejected the petition in August, saying GUVNL cannot alter the terms of the contract retrospectively.

GUVNL signed 88 contracts for a total of 971.5MW of solar capacity with developers, including Moser Baer India Ltd, Adani Enterprises Ltd, Tata Power Co. and Welspun Energy Ltd, starting 2010.

Raj Gopal, managing director at GUVNL, was unavailable when called at his office on Thursday and didn’t respond to an e-mail seeking comment. Bloomberg

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