Acme Solar takes NTPC to Court Over Tariff dispute

In a solar auction held by NTPC in August, Acme Solar had won a 600MW project in a total of 2000MW.

In the latest fallout from the government imposed safeguard duty on solar panels and modules, Acme Solar has dragged the National Thermal Power Corporation (NTPC) to court over a dispute in tariff.

In a solar auction held by NTPC in August, Acme Solar had won a 600MW project in a total of 2000MW. The petition has been filed by Acme Solar in Delhi High Court contesting a new condition introduced by the NTPC in the letter of Intent after the auctioning process.

“It is submitted that introduction of new conditions once the bidding process has been completed, is not permissible in law,” Acme Solar wrote to NTPC in response to the letter of intent.

The matter is about the per unit cost which the NTPC will be paying to Acme Solar. In the intial bidding during early july, Acme Solar had quoted Rs 2.59 per unit, which included the anticipated cost increase from the imposition of safeguard duties.

By the end of July, government imposed safeguard duties on imported solar modules and products at 25% for the first year, followed by 20% for six months and 15% for another six.

In August, during the time of the final bidding, Acme changed per unit price to Rs 2.53 excluding the price increase from safeguard duties. The price increase from safeguard duties Acme Solar calculated to be Rs 0.31 per unit.

The bone of contention in the entire matter is the decision by the NTPC to consider Acme’s intial bid of 2.59 as the final bid.

“In case safeguard duty is not paid… for whatsoever reason, the implication of 31 paise will be deducted from the final tariff of Rs 2.59… In such case, the final tariff payable will be Rs 2.28,” it said.

Source: ET