Raasi Green Earth Energy Private Limited and VSR Solar Power Private Limited had sought extension of the commencing date by 15 months and 18 months respectively.
According to the Hindu they cited the levy of safeguard duty by the Centre in 2018 on imports of solar modules from China, Taiwan and Malaysia as a change of law and a force majeure event. In 2017, Tangedco had floated a tender for procuring 1500 MW of solar power from the developers for establishing solar power plants under the reverse bidding process (the lowest bidder emerges as the winner). The upper limit fixed in the tender was INR 4 per unit.
TNERC rejected their pleas stating that the clause in the power purchase agreements does not encompass either the levy of safeguard duty in specific nor change in law in general as one of the force majeure events, reports the publication.
It also noted that of the13 developers, who had executed the power purchase agreements along with the two firms, none of them took shelter under this clause and all of them have executed their projects.
The two projects have not been commissioned within 34 months from the date of signing the power purchase agreements.