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Monday, 19 March 2018 12:22

NLCIL plea on solar power tariff rejected

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19/03/2018

The Tamil Nadu Electricity Regulatory Commission (TNERC) has once again rejected the review petition filed by NLC India Ltd (NLCIL) for extending the tariff of Rs. 4.41 per unit for its 500 MW solar power project.

The proposed projects were to be completed by March 31, 2018, to avail the tariff of Rs. 4.41 per unit.

In its fresh review petition, the firm said it is seeking the extension till September 30, 2018, citing problems arising out of the rollout of the Goods and Services Tax (GST).

NLCIL said the concessions and exemptions for renewable energy under various Central/State laws have been pruned following the rollout of the GST. Under the solar developer and operator model, the entire supplies and services are taxed at the rate of 18% under the GST, whereas earlier the rate stood at 5%, it added.

The firm also highlighted the taxation issues related to imported solar modules lying at various ports.

The landed cost of components has also risen due to higher tax, and pending clarity on the tax structure, the vendors are in wait and watch mode, it added.

As a result, the public sector company sought for the extension of time with the applicable tariff.

However, the TNERC has refused to admit the plea and noted that the GST was implemented from July 1, 2017.

“But the projects in question should have been commissioned before March 31, 2017 during the control period of 2016-17. Therefore, the impact of the GST Act, which came into force with effect from July 1, 2017 cannot be cited as a reason for the delay in the execution of the projects and the project components could have been purchased and installed much before the implementation of the Act, it added.

Last year too, the TNERC had rejected the firm’s plea for extension of tariff. That time, the company had sought for extension, citing environmental issues. Recently, the TNERC had suggested a tariff of Rs. 3.11 per unit without accelerated depreciation and Rs. 3.05 per unit with accelerated depreciation for solar energy from April 1, 2018.

Additional Info

  • News Section: Solar Energy News
  • Month: March
  • Year: 2018
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