ACME Solar's subsidiary awarded ~ INR 47.40 crore as Change in Law compensation by RERC

ACME Solar Holdings Limited subsidiary - ACME Aklera Power Technology Private Limited has secured an award of ~ INR 47.40 crore as change in law compensation by the Rajasthan Electricity Regulatory Commission (RERC). As a result of the ruling, the 250 MW solar project contracted with SECI is expected to benefit with an additional revenue of ~3.5% for a period of 15 years. The case sets a precedent for regulatory certainty and project development cost stability in the renewable energy industry.

The awarded compensation includes compensation towards imposition of basic customs duty on solar cells and modules, increase in GST from 5% to 12% and carrying cost. The total amount is to be received through an annuity mechanism at a discount rate of 9% over a period of 15 years, ensuring fair recovery of unforeseen regulatory cost increases and protecting project economics.

The Hon'ble RERC's timely adjudication and directions for payment of additional cost in a time bound manner have reinforced investors and developers' confidence, underscoring a supportive regulatory environment for renewable energy growth in the country.

Shares of ACME Solar Holdings Limited was last trading in BSE at Rs. 250.50 as compared to the previous close of Rs. 250.90. The total number of shares traded during the day was 22344 in over 609 trades.

The stock hit an intraday high of Rs. 251.65 and intraday low of 250.00. The net turnover during the day was Rs. 5601954.00.

Source : Equity Bulls

Keywords

ACMESolarHoldings INE622W01025 ACMEAkleraPowerTechnology Compensation RERC SECI