In a major ruling delivered on August 4, 2025, the Supreme Court dismissed the appeals filed by Gujarat Urja Vikas Nigam Limited (GUVNL) against the orders of the Gujarat Electricity Regulatory Commission (GERC) and the Appellate Tribunal for Electricity (APTEL), allowing wind energy companies to seek individual tariff determination when they do not claim Accelerated Depreciation (AD).
Case Background
GUVNL had signed Power Purchase Agreements (PPAs) with four companies:
- Green Infra Corporate Wind Pvt. Ltd.
- Vaayu (India) Power Corporation Pvt. Ltd.
- Green Infra Wind Power Ltd.
- Tadas Wind Energy Pvt. Ltd.
These companies approached GERC for project-wise tariff fixation, stating they hadn’t availed AD under the Income Tax Act, 1961. GERC and APTEL ruled in their favour. GUVNL challenged this in the Supreme Court.
Read also:- Supreme Court Shares Contact List for VC Hearings on 4 August 2025
“Tariff of ₹3.56/kWh only applies to wind energy projects that avail Accelerated Depreciation.” — Supreme Court
- GERC’s 2010 Order fixed ₹3.56 per unit as tariff only for projects availing AD.
- It allowed non-AD projects to file petitions for individual tariff determination.
- The Income Tax Act allows renewable projects to choose AD at the time of income tax return filing—not while signing PPAs.
GUVNL argued:
- All four projects signed PPAs at ₹3.56/kWh.
- They shouldn’t now seek higher tariffs on grounds of non-AD benefit.
Read also:- Supreme Court Cancels Court No.16 Sitting on 4 August 2025, Cases Rescheduled
SC rejected this:
- No written commitment was taken by GUVNL regarding the AD status.
- PPAs were signed before the companies could even exercise their AD option under tax law.
- Tariff determination is a statutory function, not a mere commercial contract.
“GUVNL cannot act like a private entity ignoring state energy policies promoting renewable energy.” — Supreme Court
- Government of Gujarat’s Wind Power Policy (2007) and Wind Power Policy (2013) emphasized promoting wind energy with fair incentives.
- GUVNL, being a state instrumentality, was duty-bound to follow such policy directions rather than insist on fixed commercial terms.
Read also:- SC Closes Wife's Transfer Plea After Mutual Divorce Settlement Between Parties
The SC affirmed:
- Tariff of ₹3.56/kWh does not apply to projects not availing AD.
- GUVNL cannot enforce this tariff without verifying AD status.
- GERC’s and APTEL’s decisions allowing separate tariff determination are valid and legal.
The Court dismissed GUVNL's appeals and vacated the interim stay from its earlier order dated 03.02.2023.
Case Title: Gujarat Urja Vikas Nigam Limited vs Green Infra Corporate Wind Pvt. Ltd. & Others
Citation: 2025 INSC 922
Civil Appeal Nos.: 14098–14101 of 2015
Date of Judgment: August 4, 2025
Appellant: Gujarat Urja Vikas Nigam Limited (GUVNL)
Respondents:
- Green Infra Corporate Wind Pvt. Ltd.
- Vaayu (India) Power Corporation Pvt. Ltd.
- Green Infra Wind Power Ltd.
- Tadas Wind Energy Pvt. Ltd