in the matter of - uperc

Petition No. 1019/2015 & 1024/2015

BEFORE

THE UTTAR PRADESH ELECTRICITY REGULATORY COMMISSION

LUCKNOW

Date of Order: 14 .01.201 6

PRESENT:

1. 1. 2. 3.

IN THE MATTER OF:

1. Petition No. 1019 of 2015 : Approval of Supplementary PPA of Shri Saurya Powertech Pvt Ltd dated 21 .01.2015 for 20 MW Solar Power .

2. Petition No. 1024 of 2015 : Shri Colonizers & Developers sought stay of

operation of UPNEDA letters dated 06.05.2015 and 09.06.2015 issued to petitioner for failing to commission 20 MW Solar Plant by 27.04.2015 and other conditions of PPA.

AND AND

1. Petition No. 1019 of 2015 UP Power Corporation Limited (Through its Chief Engineer PPA) 14th Floor, Shakti Bhawan Extension 14- Ashok Marg, Lucknow.

AND --------------- Petitioner

M/s Saurya Powertech Pvt. Ltd., A-49, Sector 63, Noida- 201301

of 4

Noida- 201301

--------------- Respondents

2. Petition No. 1024 of 2015

Shri Colonizers & Developers Pvt. Ltd., S-14, IInd Floor, Jai Hind Commercial Center, Lal Bagh, Lucknow.

--------------- Petitioner

Printed by BoltPDF (c) NCH Software. Free for non-commercial use only.

AND

Director, Uttar Pradesh New and Renewable Energy Development Agency, Vibhuti Khand, Gomti Nagar, Lucknow.

Chief Engineer, Power Purchase Agreement Directorate, U.P. Power Corporation Limited, U.P. Power Corporation Limited, Shakti Bhawan, Ashok Marg, Lucknow.

Managing Director, U.P. Power Transmission Corporation Limited, Shakti Bhawan, Ashok Marg Lucknow.

--------------- Respondents

Following were presents

1. Sri V.P. Srivastava, CE (PPA)

2. Sri S.K. Sinha , SE, (PPA)

3. Sri Rajeev Srivastava, Advocate, UPPCL

4. Smt. Namrata Kalra , UPNEDA 4. Smt. Namrata Kalra , UPNEDA

5. Sri Nishant Shukla, Advocate, UPNEDA

ORDER

(Date of Hearing 22.12.2015)

1. In the matter of petition no. 1019/2015 : M/s Shri Colonizers &

Developers entered into PPA for 20 MW solar power. Subsequently, Shri

Colonizer wants to transfer this PPA to its wholly owned subsidiary Shri

Saurya Powertech Pvt Ltd. on same terms and conditions. The

Supplementary PPA has been signed on 21.03.2015 and the same is now put

before the Commiss ion for its approval.

of 4

2. In the matter of petition no. 10 24 /2015 : The PPA for 20 MW solar power is

signed by Shri Colonizers on 28.03.2014, which has provision that plant shall be

commissioned within 13 months from the date of signing of PPA i.e. 27.04.2 015.

Under the provision 4.8.1B(b) of the PPA UPNEDA, the Bid Process Coordinator

(BPC) for the solar power, imposed penalty on Shri Colonizer vide letters dated

06.05.2015 and 09.06.2015 for non-commissioning of plant within stipulated time

and failin g to meet condition subsequent to signing of PPA . Further, it was also


asserted by UPNEDA that were penalty not paid within a week the Contract

Performance Guarantee shall be invoked and PPA shall be cancelled. The

Petitioner in this case has approached th e Commission for stay of above orders

citing various grounds execute

the project.

3. In last hearing, t he Commission directed M/s Shri Colonizers & Developers to

submit up to date details of financial investments don e in respect of land submit up to date details of financial investments don e in respect of land

acquisition and land acquired by with a copy to UPNEDA and UPPCL. For this

purpose specific mutation of the land or registration of the land transferred in

favour of petitioner only will be considered. UPNEDA and UPPCL were directed

to give their comments on these submissions within 10 days of receipt of

submissions from the petitioner .

4. M/s Shri

Colonizers & Developers made their written submission in the hearing only. M/s

Shri Colonizers & Developers maintained in submission that in compliance with

the directive they standby contents of Petition no. 1024/2015 and have nothing

to add to it. They further submitted that they have made considerable financial

investment and expend ed significant time and efforts in procuring and acquiring

land for the project. They also submitted that they are whole heartedly and

utmost sympathetic consideration in the matter.

5. M/s Shri Colonizers & Developers submitt ed that against the total requirement

of land of 114.96 acres they have acquired 11 acres of land and for the rest

they have entered into MoUs/ agreements for acquiring it. Further, they

submitted that as of date they have invested approx. Rs. 20 crores that

includes Rs. 2.35 crores towards acquiring land, payment of BG fee and

of 4

includes Rs. 2.35 crores towards acquiring land, payment of BG fee and

conducting viability study, Rs. 2 crores (approx.) towards consideration in

executing MoU for land acquisition and Rs. 15 crores as BG for th e project.

6. M/s Shri Colonizers & Developers argued that since state officials were busy in

recently held Panchayat elections thus the process of land acquisitions was

slowed down and this was beyond their control and requested for 3 months

more to complete the land acquisition.


7. Neither in the hearing nor during perusal of the submission made by M/s Shri

Colonizers & Developers update regarding the grid -connectivity were referred

to whereas in last hearing it was submitted by M/s Shri Colonizers &

Developers that negotiation with concerned owners of land adjacent to Turra

132 kv sub -station was in advance d stage.

8. UPNEDA maintained that as on date none of the obligations under PPA are

fulfilled and as per provisions of PPA for achieving commercial operation fulfilled and as per provisions of PPA for achieving commercial operation

extension beyond 6 months cannot be granted and even that time line has

elapsed on 27.10.2015 and therefore no extension may be granted by the

Commission.

9. In the hearing parties acknowledged the fact that with advancement in solar

technology capital cost of solar projects is rec eding . It seems that one of the

reservations of UPNEDA is also on this account as higher cost of power is

eventually passed on to consumers. The Commission enquired from both the

parties how would they like to address this concern and relook into the price of

power . Both the parties agreed to revisit this issue and also revisit the

modalities of the agreement and then come up to the Commission with an

agreed proposal. One has to keep in mind the tariff benchmarked for similar

projects

time from date of hearing to both sides to discuss the matter and come to the

Commission with an agreed solution.

10. Further, the Commission directs the developer to submit its roadmap for

finan cial closure, land acquisi tion and connectivity agreement to vindicate its

appeal for time extension to complete the project.

11. The Commission adjourned the hearing .

12. The next date of hearing shall be fixed subsequent to submissions as above.

of 4

12. The next date of hearing shall be fixed subsequent to submissions as above.

(S.K. Agarwal) (Indu Bhushan Pandey) (Desh Deepak Verma)

Member Member Chair man

Place: Lucknow

Dated: 14.01.2016


in the matter of - uperc

Documents