UPERC compensates SAEL for Increased GST Rates

The Uttar Pradesh Electricity Regulatory Commission (UPERC) ordered compensation for SAEL Limited due to increased project costs resulting from a rise in GST rates. SAEL Limited, a public company focusing on sustainable infrastructure, faced heightened project costs post-September 2021's GST rate hike. They argued this change constituted a change in law, warranting compensation. SAEL submitted their bid in June 2019 and signed the PPA.\r

A September 30, 2021 notification by the Union Finance Ministry raised GST on solar modules from 5% to 12%, leading to an additional expense of Rs 5.37 crore for modules and Rs 36.55 lakh for inverters. UPERC acknowledged these costs, ordering compensation of Rs 5,37,90,626 for SAEL.