ACME Solar arm gets Rs 47.40-cr 'change-in-law' compensation for Rajasthan project

New Delhi, Nov 17 (PTI) ACME Solar Holdings on Monday said that its arm ACME Aklera Power Technology has secured Rs 47.40 crore as "change in law compensation" for a 250-MW solar project in Rajasthan.

The ruling of the Rajasthan Electricity Regulatory Commission (RERC) for the project contracted with SECI is expected to benefit with an additional revenue of 3.5 per cent for 15 years, a company statement said.

The awarded amount includes "compensation towards imposition of basic customs duty on solar cells and modules, increase in GST from 5 per cent to 12 per cent and carrying cost".

"The total amount is to be received through an annuity mechanism at a discount rate of 9 per cent over a period of 15 years, ensuring fair recovery of unforeseen regulatory cost increases and protecting project economics," it said.

According to ACME Solar, the case sets a precedent for regulatory certainty and project development cost stability in the renewable energy industry.

"The RERC's timely adjudication and directions for payment of additional cost in a time-bound manner have reinforced investors and developers' confidence, underscoring a supportive regulatory environment for renewable energy growth in the country," it said.

ACME Solar Holdings Limited is a leading integrated renewable energy player with a diversified portfolio spanning solar, wind, storage, FDRE and hybrid solutions and an operational capacity of 2,918 MW and under construction capacity of 4,472 MW including 13.5 GWh of battery energy storage system installation. PTI KKS HVA