JSA successfully represented Rain Cements Limited before the Supreme Court and secured an interim order dated May 22, 2025, staying the levy of Grid Support Charges on Captive Power Plants (CPPs) for the financial year 2025–26. This provides interim relief to CPPs in the state of Andhra Pradesh, which were burdened by the imposition of such charges.
By an order dated February 20, 2025, the Andhra Pradesh Electricity Regulatory Commission (APERC) had permitted the distribution licensees of Andhra Pradesh (AP Discoms) to levy Grid Support Charges on CPPs for FY 2025–26. This order was challenged before the Appellate Tribunal for Electricity (APTEL). However, by its judgment dated May 13, 2025, APTEL dismissed the appeal. A Civil Appeal was thereafter filed before the Supreme Court.
At the first hearing on May 22, 2025, the Supreme Court noted a prima facie illegality in the levy of Grid Support Charges on CPPs in Andhra Pradesh and accordingly directed that the levy be stayed, subject to the appellant depositing 50% of the claimed amount.
Notably, in earlier civil appeals filed by JSA on behalf of Sarda Metals & Alloys Ltd., the Supreme Court had also granted similar stay orders on October 21, 2024, and November 11, 2024, in relation to the levy of Grid Support Charges for the financial years 2022–23 and 2023–24.
This marks a paradigm shift in the Supreme Court’s approach to the issue of Grid Support Charges on CPPs. In previous cases involving similar levies by other states—such as Madhya Pradesh—the Supreme Court did not provide any interim relief.
Therefore, the interim order dated May 22, 2025, for the FY 2025–26 levy, along with the earlier orders dated October 21, 2024, and November 11, 2024, for FY 2022–23 and FY 2023–24 respectively, constitute a welcome, albeit temporary, relief for CPPs that were otherwise required to pay the entire amount of the charges. This development is also likely to assist other similarly placed CPPs across the sector.
Mr. P. Chidambaram, Senior Advocate, led the arguments, supported by Ms. Poonam Verma Sengupta (Lead Partner), Mr. Saunak Kumar Rajguru (Principal Associate), and Ms. Devisi Bhuwalka (Junior Associate) on behalf of Rain Cements.
The JSA disputes team comprised Lead Partner Poonam Verma Sengupta, Principal Associate Saunak Kumar Rajguru, and Junior Associate Devisi Bhuwalka.
Poonam has been actively involved in the disputes and corporate practice of the firm with primary focus in the Energy and Transportation Sector. For around two decades with the firm, Poonam has specialized in Power and Aviation Sectors.