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Introduction
The months of November and December 2025 marked a watershed in regulatory and judicial developments affecting India's energy, infrastructure, and natural resources sectors.
India made a significant shift in its nuclear energy framework with the enactment of the Sustainable Harnessing and Advancement of Nuclear Energy for Transforming India Act, 2025 (the "SHANTI Act"). The legislation anchors India's long-term energy transition strategy, supporting the twin objectives of energy security and net-zero emissions by 2070, while facilitating the scale-up of nuclear capacity to 100 GW by 2047. The SHANTI Act replaces the Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage Act, 2010 (the "CLND Act"), and introduces a calibrated opening of the nuclear sector to private participation. Its enactment aligns with the National Nuclear Mission announced in the Union Budget 2025–26, which promotes Bharat Small Reactors and Bharat Small Modular Reactors.
On the energy front, the Ministry of Power notified the updated Comprehensive Policy for Utilization of Biomass & Torrefied Charcoal from Municipal Solid Waste for Co-firing in Coal-based Thermal Power Plants, superseding the 2021 policy (and its 2023 amendment)., The Ministry of New and Renewable Energy issued multiple updates, including amendments to wind turbine Approved List of Models and Manufacturers and clarifications on renewable energy projects under the Strategic Interventions for Green Hydrogen Transition Programme. The Central Electricity Regulatory Commission has issued guidelines on Virtual Power Purchase Agreements to enable consumers to meet their renewable energy obligations through non-physical power contracts.
Regulatory updates have also been carried out in the infrastructure sector which includes the Ministry of Road Transport and Highways' guidance on utilising the National Database for Emergency Management for highway project planning and the accommodation of OFC/telecom wires under the BharatNet Project, and the Ministry of Ports, Shipping and Waterways' draft guidelines for greenfield shipbuilding clusters, brownfield expansion, and shipbuilding risk coverage.
On the judicial front, the Supreme Court reviewed and clarified its earlier decision on ex-post facto environmental clearances, and delivered important rulings on the protection of the critically endangered Great Indian Bustard, balancing species conservation with renewable energy development. In parallel, the Delhi High Court and the Central Electricity Regulatory Commission rendered significant decisions addressing the contours of arbitral jurisdiction under the Electricity Act, 2003, and the scope of tariff-related adjudication, respectively.
With significant developments summarised under one umbrella, we hope this edition of Energy, Infrastructure and Natural Recourses Newsletter will make an interesting read.
KEY REGULATORY UPDATES
DEPARTMENT OF ATOMIC ENERGY
India has enacted the SHANTI Act, which repeals and replaces the
Atomic Energy Act, 1962 and the Civil Liability for Nuclear Damage
Act, 2010. The SHANTI Act forms part of India's policy
framework to scale nuclear power capacity to 100 GW by 2047 and to
support its long-term energy transition objectives.
The SHANTI Act introduces a licensing regime for activities including: (a) the construction, ownership, operation and decommissioning of nuclear power plants and reactors; (b) fabrication and processing of nuclear fuel; transportation, storage, import and export of nuclear materials; and (c) the import or export of prescribed nuclear equipment, technology and software. Licences may be granted to government entities, government companies, private companies, joint ventures and other persons as notified by the Central Government.
Certain activities remain reserved for the Central Government, including uranium and thorium mining, enrichment beyond a certain threshold or isotopic separation of prescribed substances (unless otherwise notified), and spent fuel management.
The SHANTI Act modifies the nuclear liability framework by omitting provisions relating to strict no-fault operator liability and the statutory right of recourse against suppliers contained in the CLND Act. It also permits the grant of patents for inventions relating to the peaceful use of nuclear energy, subject to exclusions for specified or sensitive activities.
MINISTRY OF POWER
Publication of the Comprehensive Policy for Utilization of Biomass & Torrefied Charcoal made from Municipal Solid Waste (MSW) for Power Generation through Co-firing in Coal based Thermal Power Plants.(Link)
On November 7, 2025, the Ministry of Power, Government of India, notified the Comprehensive policy for utilization of biomass and torrefied charcoal from municipal solid waste for co-firing in coal-based thermal power plants, superseding the 2021 policy and its 2023 amendment. From FY 2025–26, National Capital Region power plants must co-fire 5% (five percent) biomass pellets plus an additional 2% (two percent) biomass or MSW-based torrefied charcoal, while plants elsewhere must co-fire 5% (five percent). Limited exemptions may be granted, and additional sourcing and applicability requirements have been prescribed.
MINISTRY OF NEW RENEWABLE ENERGY
Amendment to Standard Operating Procedures for Approved List of Models and Manufacturers – Wind (ALMM-Wind) and Approved List of Models and Manufacturers.(Link)
On December 01, 2025, the Ministry of New and Renewable Energy, Government of India (the "MNRE")amended Clause 8.1 of the Standard Operating Procedures for the Approved List of Models and Manufacturers for Wind ("ALMM-Wind") and the Approved List of Models and Manufacturers for Wind Turbine Components ("ALMM-WTC"), originally issued by the MNRE on October 29, 2025,1 to defer the mandatory requirement for manufacturers to undertake prototype testing in India for a period of 2 (two) years from the date of the amendment, i.e., until December 01, 2027.
Clarification regarding applicability of ALMM List–I and ALMM List–II to the projects under Mode 2A and 2B of the Strategic Interventions for Green Hydrogen Transition Programme.(Link)
The MNRE on December 19, 2025, issued a clarification on the applicability of ALMM List-I and ALMM List-II to renewable power projects under SIGHT Mode 2A and Mode 2B. MNRE clarified that projects whose last date of bid was on or before August 31, 2025 are exempt from the requirement to use solar PV cells from ALMM List-II, to the extent of renewable power required for the capacity allocated under SIGHT 2A or 2B, irrespective of their date of commissioning.
MNRE further clarified the continued applicability of earlier exemptions from ALMM requirements for renewable energy plants located in special economic zones ("SEZ") or export-oriented units ("EOUs)" supplying power exclusively to green hydrogen (or derivative) production facilities located in an SEZ or set up as an EOU.2
Draft Order for Increasing Threshold Solar PV Module Efficiencies for Enlistment in Approved List of Models & Manufacturers List-I for Solar PV Modules.(Link)
On November 28, 2025, the MNRE, published the draft order for increasing the threshold efficiency for solar PV module for enlistment in Approved List of Models & Manufacturers (List-I) ("ALMM List-I") for solar PV modules (the "Draft Order").
According to the Draft Order, increasing the threshold efficiency for solar PV module is required to ensure that the enlistment in ALMM List-I is reflective of the commercial availability of high efficiency solar PV modules and advancements in solar PV module manufacturing sector.
The Draft Order proposes the following revisions to the efficiency thresholds:
|
Category |
Application/Use |
Technology |
Existing Module Efficiency Threshold |
Module Efficiency Threshold Proposed from 01.01.2027 |
Module Efficiency Threshold Proposed from 01.01.2028 |
|
I |
Utility/ Grid- Scale |
c-Si |
20.0% |
21.0% |
21.5% |
|
CdTe |
19.0% |
20.0% |
20.5% |
||
|
II |
Rooftop & Solar Pumping |
c-Si |
19.5% |
20.5% |
21.0% |
|
CdTe |
18.5% |
19.5% |
20.0% |
||
|
III |
Off- grid (DRE) <200Wp |
c-Si |
18.0% |
19.0% |
19.5% |
|
CdTe |
18.0% |
19.0% |
19.5% |
||
|
IV |
Other Applications |
c-Si |
19.0% |
20.0% |
20.5% |
|
CdTe |
18.0% |
19.0% |
19.5% |
The Draft Order states that solar PV modules which are enlisted in ALMM List-I but have solar PV module efficiencies below the revised module efficiency thresholds proposed under the Draft Order, will be removed from the ALMM List-I, once the new module efficiency thresholds become effective.
CENTRAL ELECTRICITY REGULATORY COMMISSION
Publication of the Guidelines for Virtual Power Purchase Agreements.(Link)
The Central Electricity Regulatory Commission ("CERC") has issued guidelines on Virtual Power Purchase Agreements ("VPPAs") to provide a regulatory framework for an emerging contracting mechanism that enables consumers to meet their renewable energy obligations.
Introduced in the context of India's commitment to scale up non-fossil fuel capacity, VPPAs are financial, over-the-counter contracts between renewable energy generating stations and consumers, without physical delivery of electricity. Under a VPPA, the generator sells power through authorised market channels, while the consumer settles the difference between an agreed strike price and the settlement price and receives the associated renewable energy certificates for compliance purposes.
The guidelines classify VPPAs as non-transferable and non-tradable contracts within CERC's regulatory jurisdiction. Key features include a minimum contract tenure of 1 (one) year, bilateral financial settlement, mandatory registration of generating stations under the REC framework, restrictions on transfer or trading of renewable energy certificates, safeguards against double counting, and contractual dispute resolution mechanisms.
For a more detailed analysis of the VPPA Guidelines, please click here[IndusLaw1].
Reduction of GST rate on procurement of renewable energy devices and parts for their manufacture from 12% to 5%.(Link)
The CERC, on November 04, 2025, takingsuo motucognizance of the reduction in goods and services tax ("GST") rates on the procurement of renewable energy devices and components from 12% (twelve percent) to 5% (five percent) pursuant to the Ministry of Finance's notification dated September 17, 2025 (effective from September 22, 2025), directed renewable energy generating stations and distribution licensees to factor in the impact of the reduced GST rate before approaching the CERC for tariff determination under the 'Change in Law' provisions of their respective power purchase agreements, and in accordance with the Electricity (Timely Recovery of Costs due to Change in Law) Rules, 2021 read with Section 63 of the Electricity Act, 2003 (the "Electricity Act"). This directive applies to all cases where procurement, commissioning, and the commercial operation date fall after September 22, 2025, while the bid submission date precedes that date.
This decision is premised on Section 171 of the Central Goods and Services Tax Act, 2017, which mandates that any reduction in the rate of tax on inputs or any benefit arising from input tax credit must be passed on to the recipient through a commensurate reduction in prices.
Draft Amendment in CERC (Terms and Conditions of Tariff) (Second Amendment) Regulations 2025.(Link)
On December 1, 2025, CERC issued a draft amendment to the CERC (Terms and Conditions of Tariff) Regulations, 2024, formally bringing Integrated Energy Storage Systems ("IESS") within the regulated tariff framework for coal, lignite and gas-based generating stations and the ISTS, excluding competitively bid projects. The draft introduces a supplementary IESS tariff, prescribes performance norms, enables grid-side storage for reliability and deferral of transmission investments, sets detailed norms on depreciation, O&M and ROE, allows interim tariffs and in-principle approvals, and introduces a regulatory sandbox for approved storage-related R&D pilots.
CENTRAL ELECTRICITY AUTHORITY
Publication of the Draft Guidelines for Tariff Based Competitive Bidding Process for Procurement of Power from Grid Connected Waste to Energy Projects.(Link)
The Central Electricity Authority, on November 13, 2025, published the draft guidelines for tariff based competitive bidding process for procurement of power from grid connected waste to energy ("WTE") projects. The draft framework seeks to promote WTE power generation and enable municipal corporations, urban local bodies and state-nominated agencies to undertake transparent and competitive procurement. Applicable to all commercially proven, MNRE-approved WTE technologies using municipal solid waste-derived fuel, the guidelines set out roles and responsibilities of stakeholders, pre-bid requirements including regulatory approvals and bid documentation, and detailed rules governing bid submission, evaluation, and maintenance of competition.
MINISTRY OF COAL
Auction of Coal Linkage for Seamless, Efficient and Transparent Utilization by creation of new window.(Link)
The Ministry of Coal, Government of India ("MoC") has issued an office memorandum introducing the "CoalSETU" window under the Non-Regulated Sector Linkage Policy3on December 19, 2025. The CoalSETU framework enables auction-based allocation of coal linkages without a specified end-use requirement, allowing any domestic buyer to participate. Coal may be used for industrial purposes, coal washing, or export (up to 50% (fifty percent)), but not for domestic resale.
Appointment of Coal Controller Organization as the authority to register and regulate coal exchanges.(Link)
The MoC vide notification dated December 10, 2025, appointed the Coal Controller Organization as the authority to register and regulate coal exchanges, for the minerals specified in Part A of the First Schedule of the Mines and Minerals (Development and Regulation) Act, 1957 (the "MMDR Act").
Public Consultation for the Draft Coal Exchange Rules, 2025.(Link)
On December 19, 2025, the MoC issued the Draft Coal Exchange Rules, 2025, proposing the establishment of an electronic trading platform for coal and lignite and inviting public comments. The proposal reflects expectations of a surplus coal market, with domestic production exceeding one billion tonnes and projected to cross 1.5 billion tonnes by 2030. Issued under Section 18B of the MMDR Act, the draft framework seeks to promote market development through regulated mineral exchanges for trading coal, a notified mineral under the Act
Proposal for Amendment of the Mines and Minerals (Development and Regulation) Act, 1957.(Link)
On December 12, 2025, the MoC proposed amendments to the MMDR Act, including recognition of coal gasification as a mining operation, revision of limits on mining areas and lease tenure, provisions for lease renewal, disposal of legacy captive mineral stock, and strengthened measures to curb illegal coal mining.
MINISTRY OF PETROLEUM AND NATURAL GAS
Notification of the Petroleum and Natural Gas Rules, 2025.(Link)
On December 09, 2025, the Ministry of Petroleum and Natural Gas, Government of India (the "MoPNG") notified the Petroleum and Natural Gas Rules, 2025 (the "PNG Rules 2025"), repealing the Petroleum and Natural Gas Rules, 1959. The PNG Rules 2025 introduce basket petroleum leases covering all mineral oil operations, permit lease mergers and reservoir extensions, and provide longer tenures of up to 30 (thirty) years. They enable comprehensive energy and decarbonisation projects, codify change-in-law protection, enhance environmental and greenhouse gas obligations, replace criminal liability with higher monetary penalties, establish an adjudicating authority, fix New Delhi as the default arbitral seat, and standardise lease formats.
Concept Note on National Integrated CBG Promotion Scheme for Promotion and Scaling-up of Compressed Bio Gas ("CBG") Production. (Link)
The MoPNG on November 24, 2025, issued a concept note on a proposed National Integrated CBG Promotion Scheme to scale up compressed biogas production in India. Driven by rising energy demand and import dependence, the proposal builds on the National Policy on Biofuels, 2018 and the Sustainable Alternative Towards Affordable Transportation initiative, and seeks to consolidate existing CBG-related schemes under a unified framework.
The proposed scheme integrates Central Financial Assistance by MNRE, Market Development Assistance by Department of Fertilizers, pipeline infrastructure development, and biomass aggregation machinery initiatives, with MoPNG as the nodal ministry. While MNRE and the Department of Fertilizers will continue administering financial assistance components, MoPNG will oversee overall implementation, monitoring, and inter-ministerial coordination to enable streamlined execution, improved resource utilisation, and expansion of CBG production, marketing, and supporting infrastructure.
PETROLEUM AND NATURAL GAS REGULATORY BOARD
PNGRB revises Unified Tariff to enable "One Nation, One Grid, One Tariff" for CNG and Domestic Piped Natural Gas.(Link)
The Petroleum and Natural Gas Regulatory Board ("PNGRB") has revised the unified natural gas transportation tariff to advance the "One Nation, One Grid, One Tariff" objective for CNG and Domestic PNG. The tariff structure has been simplified from three zones to two, with all CNG and Domestic PNG consumers nationwide charged the Zone-1 tariff of INR 54 (Indian Rupees Fifty-Four) per Metric Million British Thermal Units, irrespective of distance. Effective January 1, 2026, the reform reduces transportation costs by nearly 50% (fifty percent) for distant consumers, is expected to lower city gas distribution sector costs by about INR 1,000,00,00,000 (Indian Rupees One Thousand Crore) annually, and reduce delivered prices for CNG and Domestic PNG.
MINISTRY OF ROAD TRANSPORT AND HIGHWAYS
Use of National Database for Emergency Management Portal in Planning and DPR Preparation of Highway Projects. (Link)
The Ministry of Road Transport and Highways, Government of India ("MoRTH"), through an office memorandum dated November 11, 2025, has mandated the detailed analysis of National Database for Emergency Management ("NDEM") datasets for the preparation of the detailed project reports for highway projects ("NDEMOffice Memorandum"). The NDEM Office Memorandum mandates the use of NDEM datasets for,inter alia, route alignment optimisation, floodplain and drainage planning, risk and vulnerability assessments, and landslide risk mapping for hill roads.
The NDEM, developed and maintained by the National Remote Sensing Centre of the Indian Space Research Organisation under the guidance of the National Disaster Management Authority, is a comprehensive geospatial platform supporting disaster management, risk assessment, and infrastructure planning. It provides multi-temporal satellite data, thematic layers, and decision-support tools for monitoring natural hazards including floods, landslides, droughts, and cyclones.
Special guidelines for Accommodation of Optical Fibre Cable (OFC)/Telecom Wires under BharatNet Project Along and Across National Highways. (Link)
On November 11, 2025, the MoRTH has published special guidelines for accommodation of OFC/telecom wires under BharatNet project along and across national highways ("Special Guidelines").
The BharatNet Project, originally launched in 2011, is an ambitious project of the Government of India, aimed at providingaffordable high-speed internet access to every gram panchayat ("GP") in the country.1In August 2023, the Government of India approved the amended BharatNet Program which aims to deliver optical fiber connectivity to 2,64,000 (two lakh sixty four thousand) GPs.2
The salient features of the Special Guidelines are:
(a)The Special Guidelines are applicable to all national highways entrusted to National Highway Authority of India, National Highways & Infrastructure Development Corporation Limited, Border Roads Organisation, and state public works departments;
(b)All right-of-way applications related to the BharatNet Project are to be preferably cleared with conditions, if any, within 7 (seven) days;and
(c)The Special Guidelines waive: (i) the license fee; and (ii) the requirement for submitting performance bank guarantees, for laying of optical fiber cables in relation to the BharatNet Project.
MINISTRY OF MINES
Amendment to the Second Schedule of the Mines and Minerals (Development and Regulation) Act, 1957. (Link)
On November 20, 2025, the Ministry of Mines, Government of India, notified amendment to the Second Schedule of the MMDR Act.
Section 9 of the MMDR Act mandates that mining lease holders
must pay royalty on any mineral removed or consumed from the leased
area, at the rates prescribed in the Second Schedule. The notified
amendment revises the royalty rates for the following
minerals:
(a) Caesium, (b) Graphite, (c) Rubidium, and (d) Zirconium.
MINISTRY OF PORT, SHIPPING AND WATERWAYS
Draft Guidelines for Greenfield Shipbuilding Clusters and Brownfield Shipyard Expansion Projects under the Shipbuilding Development Scheme. (Link)
The Ministry of Port, Shipping and Waterways, Government of India (the "MoPSW") on November 04, 2025, published draft guidelines under the Shipbuilding Development Scheme for greenfield shipbuilding clusters and brownfield shipyard expansion projects. The draft is divided into separate frameworks for greenfield cluster development and brownfield expansion. The greenfield guidelines focus on creating new shipbuilding capacity, enabling large-scale investment in core maritime and industrial infrastructure, and fostering regional industrial growth and employment through integrated shipbuilding ecosystems. The brownfield guidelines aim to incentivise capital investment for capacity expansion, support rapid modernisation of existing shipyards, and enhance long-term sustainability, domestic value addition, and export competitiveness.
Draft Guidelines for Shipbuilding Risk Coverage under Shipbuilding Development Scheme. (Link)
On November 04, 2025, the MoPSW published the draft guidelines for shipbuilding risk coverage under shipyard development scheme. The draft seeks to operationalise the INR 1,443,00,00,000 (Indian Rupees One Thousand Four Hundred Forty Three Crores) allocation for credit risk coverage, providing financial protection to Indian shipyards against risks arising from shipbuilding contracts and vendor dependencies. The guidelines propose implementation through the Directorate General of Shipping or Sagarmala Financial Corporation, with government-owned entities nominated as credit risk cover agencies to design insurance products. Fund disbursement will be performance-linked, with initial tranches released to enable prompt rollout of credit risk cover products.
KEY JUDICIAL PRONOUNCEMENTS
|
SUPREME COURT OF INDIA |
|
|
Case Title |
Summary |
|
Confederation of Real Estate Developers of India v. Vanashakti & Another| Judgment dated November 18, 2025 |Review Petition (Civil) No. 3002 of 2025. |
The Ministry of Environment and Forests (now the Ministry of Environment, Forest and Climate Change (the "MoEF&CC")), exercising powers under the Environment (Protection) Act, 1986 ("EP Act"), issued the Environment Impact Assessment Notification, 2006, mandating prior environmental clearance ("EC") for specified projects. In 2017, the MoEF&CC issued a notification introducing a mechanism for grant of EC to projects that had commenced construction, expanded capacity, or altered product mix without prior EC ("2017 Notification"). Pursuant to directions of the National Green Tribunal inTanaji B. Gambhire v. Chief Secretary, Government of Maharashtra, the MoEF&CC issued an Office Memorandum dated July 7, 2021 ("2021 OM"), prescribing a standard operating procedure for identification and handling of violation cases. Both instruments contemplated grant of ex-post facto ECs subject to damage assessment, remedial measures, and community augmentation plans. Several writ petitions challenged the validity of the 2017 Notification and the 2021 OM. A two-judge bench of the Supreme Court inVanashakti v. Union of India("Vanashakti") quashed both instruments, holding that ex-post facto environmental clearances are impermissible in law and observing that payment of penalty under Section 15 of the EP Act does not regularise a project. Review petitions were filed contending that binding precedents were overlooked or misapplied. The Supreme Court observed that Vanashakti relied selectively onCommon Cause v. Union of Indiawhile ignoring other portions of the same judgment that permitted grant of ECs subject to conditions. The Court further noted thatAlembic Pharmaceuticals Ltd. v. Rohit Prajapatiinvolved ECs granted post-commissioning, and that Electrosteels Ltd. v. Union of India expressly held that the EP Act does not prohibit ex-post facto ECs. Additionally, earlier coordinate bench decisions inD. Swamy v. Karnataka State Pollution Control BoardandPahwa Plastics Pvt. Ltd. v. Dastak NGO, which upheld the validity of the 2017 Notification and the 2021 OM, were not considered. Reiterating principles of judicial discipline, the Supreme Court held that a bench of co-equal strength cannot take a view contrary to earlier coordinate bench decisions and that the Vanashakti judgment was per incuriam. The Court also clarified that Section 15 of the EP Act deals only with penalties and does not determine project regularisation. Accordingly, the review petition was allowed, Vanashakti was set aside, and the writ petitions were restored. |
|
M.K. Ranjitsinh and Others v. Union of India and Others|Judgement dated December 19, 2025. | Civil Appeal No. 3570 of2022 with Writ Petition (Civil) No. 549 of 2025 |
The Supreme Court considered a writ petition concerning the critically endangered Great Indian Bustard, primarily concentrated in the Thar Desert. Overhead transmission lines were identified as a major cause of adult mortality. Following the petition under Article 32, the Court issued interim directions on April 19, 2021, restricting overhead lines across 99,000 sq. km. and appointed a committee to explore undergrounding and bird flight diverters. The petition was contested by central ministries, including the Ministry of Power and MNRE, arguing that blanket restrictions impeded solar energy development. The Court modified the 2021 order on March 21, 2024, emphasizing scientific, site-specific measures rather than blanket prohibitions and constituted an Expert Committee. The Expert Committee's recommendations were accepted, including revised priority areas of 14,013 sq km (Rajasthan) and 740 sq km (Gujarat); in-situ and ex-situ conservation measures; creation of a 5 km power corridor near Desert National Park; immediate grounding of 80 km of 33kV lines; rerouting of select 66kV+ lines; optimization of renewable energy line routes; and undergrounding 250 km of critical lines within 2 (two) years. The Court underscored that mitigation measures must balance species conservation with renewable energy development, prioritizing the "Species Best Interest" and relying on expert-driven, scientifically informed interventions rather than blanket judicial restrictions. |
|
DELHI HIGH COURT |
|
|
Case Title |
Summary |
|
Renew Wind Energy (AP2) Private Limited v. Solar Energy Corporation of India| Judgment dated November 03, 2025 | O.M.P. (I) (Commercial) No. 213 of 2025. |
In 2025, an energy generating company approached the Delhi High Court under Section 9 of the Arbitration and Conciliation Act, 1996, seeking interim protection against deductions claimed by a counterparty under a power purchase agreement ("PPA"). The Respondent argued that the dispute fell within the exclusive jurisdiction of the CERC under Section 79(1)(f) of the Electricity Act. The Court, relying onGujarat Urja Vikas Nigam Ltd v. Essar Power Ltd,2008, held that while CERC's adjudicatory powers are limited to tariff-related matters, its authority to refer disputes for arbitration extends broadly to any dispute involving generating companies or transmission licensees. Section 174 ensures the Electricity Act overrides inconsistent laws. The Court concluded that the Section 9 application was not maintainable, though interim relief under Section 94(2) may be sought before CERC during proceedings. |
|
CENTRAL ELECTRICITY REGULATORY COMMISSION |
|
|
Case Title |
Summary |
|
Bharat Aluminium Company Limited v. Tamil Nadu Generation and Distribution Corporation Limited & Others| Order dated November 01, 2025|Petition No. 496/MP/2024. |
In a dispute arising under power purchase agreements executed in 2013 for supply of 100 MW of power, the CERC examined whether it could adjudicate a claim relating to levy of liquidated damages for delay in commencement of supply. The respondent had raised liquidated damages in 2016, which the petitioner challenged before the CERC, inter alia, on the ground that the claim was barred by limitation under the Limitation Act, 1963. Relying on the Supreme Court's decision inDamodar Valley Corporation v. Madhya Pradesh Power Management Company Limited, the CERC held that only disputes having a direct or indirect bearing on tariff qualify as "tariff disputes" within its adjudicatory jurisdiction. Disputes relating to compensation for non-performance of contractual obligations under a PPA, including levy of liquidated damages, were held to be purely contractual and non-tariff in nature. The CERC therefore declined to adjudicate the dispute and referred the matter to arbitration under Section 79(1)(f) of the Electricity Act. It further held that issues such as limitation fall within the domain of the arbitral tribunal and cannot be examined at the referral stage. |
Footnotes
1 Standard Operating Procedures for the Approved List of Models and Manufacturers for Wind (ALMM-Wind) and the Approved List of Models and Manufacturers for Wind Turbine Components (ALMM-WTC), Office Memorandum No. 233/1/2018-Wind, Wind Energy Division, Available at:https://cdnbbsr.s3waas.gov.in/s3716e1b8c6cd17b771da77391355749f3/uploads/2025/11/202511031434255080.pdf
2 Office Memorandum No. 1/74/2023-NT dated May 27, 2024, MNRE.
3 Auction of Linkages for Non-Regulated Sector (2016), Ministry of Coal, Government of India. Available at:https://www.coal.nic.in/sites/default/files/2020-01/150216.pdf
4 BharatNet: Bridging the Digital Divide, Press Information Bureau. Available at:https://www.pib.gov.in/PressReleasePage.aspx?PRID=2086701®=3⟨=2
5 Amended BharatNet Program Operationalises in Gujarat under State-Led Model, Press Information Bureau. Available at:https://www.pib.gov.in/PressReleasePage.aspx?PRID=2139308®=3⟨=2
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