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Till the disagreement over monetary closure and the scheduled date of economic operation is resolved, the Maharashtra Electrical energy Regulatory Fee (MERC) has ordered the Maharashtra State Electrical energy Distribution Firm (MSEDCL) to forbear from taking any coercive motion towards, Avaada MH Sustainable, a solar energy generator.
The ruling was issued in response to an interlocutory software made by Avaada MH Sustainable, which requested for a postponement of the 250 MW solar energy mission’s scheduled industrial operation date.
The photo voltaic developer first petitioned for an extension, alleging just a few cases of drive majeure.
In response to Avaada, it has completed 200 MW of the mission’s capability and is presently engaged on ending the remaining 50 MW, which is within the superior stage of commissioning.
For the delay, the petitioner stated, MSEDCL stalled in finishing the facility buy settlement (PPA).
Additional, delayed connectivity was granted to the mission by the Maharashtra State Electrical energy Transmission Firm (MSETCL), which additionally took too lengthy in accepting the transmission infrastructure design and program.
Moreover, the pandemic of COVID-19 and flood-like conditions on the mission location resulting from heavy rainfall additionally accounted for the mission delay.
In its software, Avaada claimed that MSEDCL had unilaterally modified a PPA clause that diminished the timeframe for the monetary closure from 18 to 12 months.
MSEDCL defined that the monetary cut-off date (18 months as an alternative of 12 months) can’t be considered resulting from a typographical error within the PPA dated August 10, 2021.
The Fee famous that the first level of rivalry centered on the timeframes for anticipated industrial operation and monetary closure as said within the PPA and the request for choice (RfS).
In response to the PPA’s phrases, the mission should be commissioned inside 15 months contained in the photo voltaic park and 18 months outdoors the photo voltaic park after the PPA’s efficient date of July 17, 2020.
In response to MERC, the solar energy producer reportedly reached monetary closure on December 27, 2021, which MSEDCL didn’t contest.
The Fee thought of the petitioner’s assertion that MSEDCL might impose liquidated damages on the applicant or might use its proper to encash the efficiency financial institution assure (PBG).
The Fee additional said that, in accordance with PPA necessities, the penalty sum should be repaid to the petitioner inside 30 days after the commissioning date if the Fee grants the scheduled operation date extension in the principle challenge.
Due to this fact, there was no have to levy such a penalty as the elemental disagreement had but to be resolved concerning the date of economic closure and the date of the projected industrial operation.