Power Grid Corporation Of India vs Tamil Nadu Generation And Distribution ...

The Supreme Court dismissed the appeal concerning the apportionment of Foreign Exchange Rate Variation (FERV) between debt and equity, holding that the issue does not constitute a substantial question of law. The Court noted that Regulation 1.13(a) of the Central Electricity Regulatory Commission (Terms and Conditions of Tariff) Regulations, 2001 does not provide for such apportionment, and the methodology for calculating FERV was not in dispute. Furthermore, the Court clarified that once FERV is calculated, it can be directly recovered from the beneficiaries without the need for a petition before the CERC, as per Regulations 1.3 and 1.7 of the Tariff Regulations, 2001.