certain reliefs to “recoup/adjust” the project economics for certain “changes in law”, including an increase in water charges by Madhya Pradesh’s water resources department of (notification dated 21.4.2010), an increase in the rate of royalty on coal by the coal ministry (notification dated May 10, 2012), levy of ‘clean energy cess’ by the Centre in the Finance Act, 2010, (Notification dated June 22,2010, issued by the ministry of finance).
Reliance Power has also cited the imposition of excise duty on coal by the Centre in the Finance Act, 2012 (with effect from April 1,2012), change in Income Tax rates introduced in the Finance Act, 2012, (from April 1, 2012) and an increase in Minimum Alternate Tax Rates (introduced in the Finance Act, 2012, with effect from April 1, 2012) as among the 10 key reasons under the “change of law” head.
The Madhya Pradesh Power Management Company and 13 other distribution companies from UP, Rajasthan, Punjab, Delhi, Haryana and Uttarakhand were to get power from the project. Reliance Power was declared a successful bidder for the project in Singrauli district in Madhya Pradesh and a letter of intent was issued to it on August 1, 2007. On August 7, 2007, a PPA was signed between the petitioner and the 14 procurers.