In Brief
Gujarat Urja Vikas Nigam Ltd (GUVNL), a state-owned utility, and Acme Solar Technologies (ASTGPL) signed a Power Purchase Agreement for a 15 MW solar power plant with a scheduled commissioning date of 29 May 2011. The contract imposed liquidated damages (₹10,000-15,000 per MW per day) for delay. ASTGPL changed the project site mid-way, triggering a supplemental agreement stating it would pay damages even if transmission lines were unavailable. The regulatory authorities limited damages to 30 September 2011, but the Supreme Court held that ASTGPL's own equipment was ready by 31 December 2011 (per official certificates). Since only transmission lines—controlled by a third party—remained incomplete, the Court modified the order, holding ASTGPL liable for damages only until 31 December 2011.
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