The Appellate Tribunal for Electricity (APTEL) has set aside an order passed by the Karnataka Electricity Regulatory Commission (KERC), providing major relief to M/s ACME Kudligi Solar Energy Private Limited in a dispute related to the delayed commissioning of its 20 MW solar power project in Kudligi, Bellary District, Karnataka.
The dispute relates to a Power Purchase Agreement (PPA) signed between ACME Kudligi Solar Energy and Bangalore Electricity Supply Company Limited (BESCOM) on March 22, 2018. Under the agreement, the Scheduled Commercial Operation Date (SCOD) of the project was November 3, 2019, calculated as 18 months from KERC’s approval of the PPA.
ACME completed construction of the solar project and obtained the required clearances before the scheduled deadline. However, the project could not commence commercial operations because the power evacuation infrastructure was not ready. The 220/66kV Kudligi sub-station and related upstream transmission lines were being developed and managed by Karnataka Power Transmission Corporation Limited (KPTCL), but their completion was delayed.
The project eventually achieved its Commercial Operation Date (COD) on May 30, 2020, after KPTCL test-charged the sub-station and issued the final commissioning certificate.
ACME approached KERC seeking an extension of the SCOD to May 30, 2020, citing force majeure provisions under the PPA. The developer argued that the delay was beyond its control because the required evacuation infrastructure had not been made available by KPTCL.
However, KERC rejected the petition in its June 11, 2021 order. The commission held that the delay could not be treated as force majeure and found that ACME had been negligent in securing the required evacuation arrangements. As a result, BESCOM was considered entitled to claim liquidated damages and apply reduced tariffs under the PPA.
ACME challenged the KERC decision before APTEL. In its judgment dated September 9, 2026, a two-member bench comprising Judicial Member Virender Bhat and Technical Member Seema Gupta overturned the KERC order.
APTEL observed that ACME was ready to commission the project before the scheduled date and that the delay resulted from the non-availability of evacuation facilities due to KPTCL’s delayed completion of the sub-station and transmission infrastructure.
The Tribunal held that the delay qualified as a force majeure event under Article 14.3.1 of the PPA, as KPTCL was a state transmission utility beyond the developer’s control. APTEL accordingly extended the SCOD from November 3, 2019, to May 30, 2020.
The Tribunal also ruled that ACME cannot be subjected to liquidated damages, contractual penalties, or tariff reduction for the delay caused by the state government agency.
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