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The Rajasthan Electricity Regulatory Commission (RERC) has mandated state power utilities to finalize a Power Purchase Agreement (PPA) with Jivraj Tea Limited and clear overdue payments exceeding ₹3.83 crore for electricity supplied to the grid. This decision aims to provide relief after prolonged legal and regulatory challenges following the expiration of the previous agreement.
Jivraj Tea Limited operates a 1.5 MW wind power installation in Siyada village, located in the Jaisalmer district of Rajasthan. The company initially established a PPA with Jodhpur Vidyut Vitran Nigam Limited in 2012 under the Renewable Energy Certificate (REC) framework, which was later prolongated until March 2019.
Post-contract termination, shifts in tariff policies led to conflicts between renewable energy producers and state authorities. Consequently, numerous developers, including Jivraj Tea Limited, petitioned the Rajasthan High Court contesting the modified commercial terms.
In December 2021, a Coordination Committee suggested a resolution mechanism to address these conflicts. The proposal included a fixed tariff rate of ₹2.44 per unit for wind projects and ₹2.24 per unit for solar projects throughout their operational lifespan. Developers opting for this resolution were expected to withdraw their legal challenges and relinquish REC claims, enabling state utilities to fulfill Renewable Purchase Obligation (RPO) requirements with renewable energy.
In 2023, many renewable energy providers accepted the settlement terms. However, Jivraj Tea Limited was not granted the same terms, with state utilities citing delays in the withdrawal of their court case, which remained unresolved.
During the proceedings, Rajasthan Urja Vikas & IT Services Limited (RUVITL) contested the petition, asserting that the matter was not actionable due to 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, complying with the settlement conditions.
Upon reviewing the situation, the Commission noted that the electricity supplied by Jivraj Tea Limited was accurately recorded via joint meter readings and had been utilized by the state. The Commission found no justification for denying the company the same benefits extended to other renewable energy producers.
The RERC instructed the relevant parties to execute the supplementary PPA within 90 days and to clear the outstanding principal of ₹3.83 crore. While the Commission dismissed the company’s request for a late payment surcharge on past dues, it permitted standard surcharge terms to be applied for future payments under the agreement.