Gujarat Urja Vikas Nigam Limited vs Green Infra Corporate Wind Private Limited and Others Etc.

Held: GUVNL, an instrumentality of the State is bound to promote and give effect to the Government’s policy of encouraging generation of power from renewable energy sources – When the Government promulgated a policy in that regard, offering various incentives to wind energy projects, GUVNL cannot act contrary thereto by fixing a tariff for purchase of power from such wind energy projects contrary to the mandate of Order dated 30.01.2010 issued by GERC as per which the tariff of ₹3.56 per kWh was applicable only to those wind energy projects that availed the benefit of accelerated depreciation – It is not disputed that the four respondent companies did not avail such benefit – Thus, the question of applying to them the tariff that was only meant for wind energy projects that did avail accelerated depreciation would not arise – GUVNL cannot be guided only by its own commercial interests, like a private business entity and it’s conduct, as a State instrumentality, must be of the standard of a model citizen – It cannot contend that the respondent companies are estopped from seeking determination of tariff by the GERC as they had willingly signed PPAs with it at the tariff fixed for wind energy projects availing accelerated depreciation – As GUVNL failed to obtain commitments from the respondent companies that they would only avail accelerated depreciation at the time they had to choose that option, GUVNL has no indefeasible right to bind them to a tariff which was applicable only to such wind energy projects that availed accelerated depreciation – Orders passed by the GERC and the APTEL not interfered with – Income Tax Rules, 1962. [Paras 24, 25]