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The Rajasthan Electricity Regulatory Commission (RERC) has directed state power utilities to sign a Power Purchase Agreement (PPA) with wind energy developer Jivraj Tea Limited and clear pending dues of more than Rs. 3.83 crore for electricity supplied to the grid. The order is expected to bring relief to the company after a long legal and regulatory dispute that began following the expiry of its earlier agreement.
Jivraj Tea Limited operates a 1.5 MW wind power project located in Siyada village in Rajasthan’s Jaisalmer district. The company had initially signed a PPA with Jodhpur Vidyut Vitran Nigam Limited in 2012 under Renewable Energy Certificate (REC) guidelines. The agreement was later extended and remained valid until March 2019.
After the contract period ended, changes in tariff-related policies led to disputes between renewable energy generators and state authorities. Several developers, including Jivraj Tea Limited, approached the Rajasthan High Court by filing petitions against the revised commercial arrangements.
In December 2021, a Coordination Committee proposed a settlement mechanism to resolve these disputes. Under the proposal, wind power projects were offered a fixed tariff of Rs. 2.44 per unit, while solar projects were offered Rs. 2.24 per unit for the remainder of their operational life. Developers accepting the proposal were required to withdraw their court cases and surrender their REC claims, allowing the state utilities to use the renewable energy towards meeting Renewable Purchase Obligation (RPO) requirements.
Many renewable energy generators accepted the settlement in 2023. However, state utilities did not extend the same benefit to Jivraj Tea Limited, arguing that the company had delayed the withdrawal of its court case and that its petition was still pending.
During the proceedings, Rajasthan Urja Vikas & IT Services Limited (RUVITL) opposed the petition and argued that the matter could not be considered because of the ongoing litigation. In response, Jivraj Tea Limited informed the Commission that the Rajasthan High Court had finalized the withdrawal of its petition in February 2026, fulfilling the conditions required under the settlement framework.
After reviewing the matter, the Commission observed that the electricity supplied by the company had been properly recorded through joint meter readings and had already been consumed by the state. The Commission found no reason to deny the company the same treatment granted to other renewable energy generators.
The RERC directed the concerned respondents to execute the supplementary PPA within 90 days and clear the outstanding principal amount of Rs. 3.83 crore. While the Commission rejected the company’s claim for past late payment surcharge, it allowed standard surcharge provisions to apply to future payments under the agreement.
