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CERC through its judgement dated 07.03.2026 in the matter of Spectrum Power Generation Limited v. Power Grid Corporation of India Limited & Ors.1 held that REC Power Development and Consultancy Limited (“RECPDCL”), acting as the Bid Process Coordinator (“BPC”) is liable to reimburse the acquisition cost paid by Power Grid Corporation of India Limited (“PGCIL”) for acquiring the special purpose vehicle for the Vemagiri Transmission System.
The dispute arose after Spectrum Power Generation Limited, sought cancellation of the transmission service arrangements on account of non-availability of domestic gas for its generation project. Despite being aware of this development, the BPC proceeded with the competitive bidding process and declared PGCIL as the successful bidder and to acquire the project SPV and pay the acquisition price. Subsequently, the transmission project did not proceed, resulting in a dispute regarding liability for the acquisition cost incurred by PGCIL. CERC vide its order dated 06.04.2015 directed PGCIL to bear 20% of the acquisition cost. Being aggrieved PGCIL filed appeal before Appellate Tribunal for Electricity (“APTEL”). APTEL vide its order dated 27.05.2025 remanded the matter back to CERC.
CERC while holding that RECPDCL is liable to reimburse the acquisition cost paid by PGCIL, noted that APTEL had strongly criticised the conduct of the BPC for failing to defer the acquisition process and to approach the appropriate authorities despite the force majeure circumstances, i.e., non-availability of gas. CERC relying on the principle that no party can take advantage of its own wrong, held that the liability to reimburse the acquisition cost must fall upon RECPDCL rather than the generator or PGCIL.
Footnote
1. Petition Nos. 127/2012, 128/TL/2012 and 156/MP/2012.
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