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KERC Revises Reimbursement to Talettutayi Solar in Safeguard Duty Case

The Karnataka Electricity Regulatory Commission (KERC) has revised the reimbursement amount payable by Bangalore Electricity Supply Company (BESCOM) to Talettutayi Solar Projects Two, lowering it from Rs1.17 billion to Rs1.11 billion. The correction came after Talettutayi admitted in a delayed review petition that it had not actually paid the Rs5.62 million Integrated Goods and Services Tax (IGST) initially claimed.

The dispute arose from the safeguard duty (SGD) imposed by the Finance Ministry on imported solar modules on July 30, 2018, which KERC recognized as a “change in law” under the terms of the company’s 20 MW PPA signed with BESCOM in March 2018. Talettutayi sought reimbursement for SGD and IGST on three lots of imported modules. While KERC’s original November 2024 order had directed BESCOM to reimburse Rs1.17 billion with 10?rrying cost, the revised order lowered the payable amount due to the IGST clarification.

BESCOM retains the option to pay in 12 monthly installments, but failure to pay two consecutive installments will make the balance amount immediately due. KERC also corrected an earlier typographical error, setting the carrying cost commencement date to March 22, 2022. This ruling underscores the importance of accurate cost claims in solar projects affected by policy shifts and highlights the Commission’s balanced approach in addressing both developer claims and DISCOM liabilities.