Electricity Regulatory Commission in proceedings claiming Change in Law compensation to offset recurring and non-recurring impact on account of introduction of Goods and Services Tax.
Ld. CERC had recently, vide its Orders dated 01.12.2022 in Petition No. 471/MP/2019 and 09.01.2023 in Petition No. 179/MP/2020 granted Change in Law compensation to offset impact of GST for several of TPREL’s solar projects. Compensation has been directed in terms of the following:
- GST impact of approximately INR 70 Crores during construction period and GST impact on actuals during the operation period (on operation and maintenance expenses) for 25 years;
- Carrying cost from date of payment of tax till issuance of Order at actual rate of interest on working capital and Late Payment Surcharge after issuance of supplementary bill by TPREL;
- Discount rate of 10.41% for annuity payments towards the above.
Our Transaction Team Comprised of Lead Partner – Abhishek Munot, Partner – Kunal Kaul, and Associate – Samikrith Rao.