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ARTICLE · 04 MARCH 2026

APTEL Holds Timeline For Commissioning Under PPA Has To Be Reckoned From Effective Date And Not The Execution Date

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The Appellate Tribunal for Electricity ("APTEL"), through its judgment dated 03.02.2026 in Krishna Windfarms Developers Pvt. Ltd. v. CERC & Ors.

IndiaLitigation, Mediation & Arbitration

The Appellate Tribunal for Electricity (“APTEL”), through its judgment dated 03.02.2026 in Krishna Windfarms Developers Pvt. Ltd. v. CERC & Ors.10, held that the scheduled commissioning period has to be computed from the ‘effective date' stipulated in the Power Purchase Agreement (“PPA”) and Request for Selection (“RfS”), irrespective of the actual date of execution of the PPA, particularly when the developer itself had delayed the execution of the PPA.

The APTEL held that when as per the RfS, the effective date of the PPA was specified as one month from the issuance of letter of intent to the developer, and when the PPA itself specified the effective date, the mere fact that RfS elsewhere provides for the effective date of execution of PPA as the actual date of execution would be irrelevant. It further held that the procurer had reminded the developer to submit all the relevant documents for execution of PPA, which was furnished with a delay, and therefore, the developer cannot be allowed to take advantage of its own wrong.

Footnote

10. Appeal No. 04 of 2020.

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