CERC Asks SECI to Pay Azure Subsidiary Additional Project Cost Following Safeguard Duty Norms

The Central Electricity Regulation Commission has directed SECI to recompense Azure Power FortyOne, a subsidiary of Azure Power India, on the incremental posts costs along with additional costs as incurred by the firm due to the imposition of safeguard duty. The duty led to the shot up of the project cost for Azure.

Further, the body has asked the associated DISCOMS to pay SECI. The payment by SECI, made to Azure Power, however, will not depend on the payment as and when made by the DISCOMS.

The PPA was entered into between Azure and SECI and Madhya Pradesh Power Management Company for developing a 300 MW solar photo voltaic power project at several villages.

It may be noted that the Central Government had imposed safeguard duty on the import of “solar cells whether or not assembled in modules or panels”: This stood at 25% along with or minus the anti-dumping duty, if any, when imported during the period from 30th July 2018 to 29th July 2019.

The judgement can be accessed at click here