Supreme Court of India · 2018-02-16
TRANSMISSION CORPORATION OF ANDHRA PRADESH LTD vs M/S G M R VEMAGIRI POWER GENERATION LTD
- Citation / case number
- SC 2014/28515
- Court
- Supreme Court of India
- Petitioner
- TRANSMISSION CORPORATION OF ANDHRA PRADESH LTD
- Respondent
- M/S G M R VEMAGIRI POWER GENERATION LTD
- Author
- HON'BLE MR. JUSTICE NAVIN SINHA
- Bench
- HON'BLE MR. JUSTICE NAVIN SINHA HON'BLE MR. JUSTICE ROHINTON FALI NARIMAN
Judgment text excerpt
The Supreme Court determined that the term 'fuel' in clause 1.1.27 of the Power Purchase Agreement (PPA) refers exclusively to 'natural gas only' and does not encompass Regasified Liquefied Natural Gas (RLNG). The Court upheld the Andhra Pradesh Electricity Regulatory Commission's interpretation, emphasizing that the higher cost of RLNG and its non-domestic availability do not justify its inclusion as a fuel option. The ruling clarified that the explicit wording in the PPA restricts the definition of fuel, thereby affirming the Commission's decision and dismissing the appeal.