MERC Takes Up Jurisdiction Battle In MSEDCL Solar PPA Dispute In Maharashtra

Representational image. Credit: Canva

The Maharashtra Electricity Regulatory Commission (MERC) has been approached by the Maharashtra State Electricity Distribution Company Limited (MSEDCL) to resolve a dispute related to a Power Purchase Agreement (PPA) signed with Braithwaite Nacof Solar Project Ltd. This dispute originates from a tender issued by MSEDCL in January 2022 for the development of 865 MW of solar photovoltaic power projects in the state. Following the bidding process, Braithwaite was awarded a Letter of Award (LoA) in August 2022, and the PPA was subsequently signed in March 2023.

As per the agreement, Braithwaite was responsible for ensuring the timely commissioning of the solar power project by the Scheduled Commercial Operation Date (SCOD). Initially, the SCOD was fixed for August 17, 2023. However, upon request from Braithwaite, the deadline was extended to March 31, 2024. Despite this extension, Braithwaite did not complete the commissioning of the project by the new deadline. In response, MSEDCL issued a Default-cum-Termination Notice to the company for failing to meet the required timelines.

Braithwaite contested this termination and approached the Bombay High Court. The court then directed MSEDCL to file a petition before the MERC under Section 86(1)(f) of the Electricity Act, 2003. This section allows the regulatory commission to adjudicate disputes between licensees and generating companies. Accordingly, MSEDCL filed a petition with the MERC, requesting the Commission to either settle the dispute itself or appoint an arbitrator to do so.

In response to this, Braithwaite submitted an Interlocutory Application (IA), requesting the dismissal of MSEDCL’s petition. The company argued that MERC does not have jurisdiction over the dispute because Braithwaite is not a “generating company” as per the definition in the Electricity Act. Furthermore, Braithwaite stated that the delay was due to factors beyond its control, such as pending approvals, and should be considered a force majeure event.

The MERC, after hearing arguments from both parties, acknowledged the complexity of the matter, particularly the legal question of whether Braithwaite qualifies as a generating company. However, the Commission stated that it has prima facie jurisdiction to handle the matter based on Section 86(1)(f). It referred to a Supreme Court judgment in the Gujarat Urja Vikas Nigam Ltd. v. Essar Power Ltd. case, which clarified the Commission’s authority in handling such disputes between power generators and licensees.

While the MERC confirmed its preliminary jurisdiction to consider the matter, it decided to leave the final decision on the jurisdictional question to the Bombay High Court. The case is still open, and further proceedings will depend on the High Court’s view on whether the MERC can fully adjudicate this contractual dispute.

 

  • Related Posts

    Scatec And EBRD Launch Renewable Energy Investment Platform In Egypt With USD 221 Million Commitment

    Scatec ASA and the European Bank for Reconstruction and Development (EBRD) have signed a share purchase agreement to establish a renewable energy investment platform in Egypt. The platform aims to…

    Indian Renewable Energy Stocks Decline as Inox Wind Falls 5.45% on October 23

    Indian stock markets closed lower on October 23, 2026, as benchmark indices recorded modest declines amid cautious investor sentiment. The S&P BSE SENSEX fell 0.17% to settle at 73,123.83, while…

    Have You Seen?

    U.S. Partner in Venezuela Oil Deal Looks to Hike Crude Production

    • October 23, 2026
    U.S. Partner in Venezuela Oil Deal Looks to Hike Crude Production

    U.S. Diesel at $6.30 a Gallon as First Russian Cargo Sets Sail for New York

    • October 23, 2026
    U.S. Diesel at $6.30 a Gallon as First Russian Cargo Sets Sail for New York

    Maximize Flow Measurement Performance While Minimizing Energy Loss With Annubar Averaging Pitot Technology

    • October 23, 2026
    Maximize Flow Measurement Performance While Minimizing Energy Loss With Annubar Averaging Pitot Technology

    US designates helium a critical material amid supply concerns

    • October 23, 2026
    US designates helium a critical material amid supply concerns

    Eni’s Profits Soar 125% as Refining Boom Fuels Massive Investor Payouts

    • October 23, 2026
    Eni’s Profits Soar 125% as Refining Boom Fuels Massive Investor Payouts

    European Natural Gas Prices Surge to Highest Level Since 2022

    • October 23, 2026
    European Natural Gas Prices Surge to Highest Level Since 2022

    Renewables Boom Pushes Australia’s Gas Power to Quarter-Century Low

    • October 23, 2026
    Renewables Boom Pushes Australia’s Gas Power to Quarter-Century Low

    DOE Advancing Constitution Pipeline to ‘Strengthen Security’

    • October 23, 2026
    DOE Advancing Constitution Pipeline to ‘Strengthen Security’

    Scatec And EBRD Launch Renewable Energy Investment Platform In Egypt With USD 221 Million Commitment

    • October 23, 2026
    Scatec And EBRD Launch Renewable Energy Investment Platform In Egypt With USD 221 Million Commitment

    Indian Renewable Energy Stocks Decline as Inox Wind Falls 5.45% on October 23

    • October 23, 2026
    Indian Renewable Energy Stocks Decline as Inox Wind Falls 5.45% on October 23