In Brief
The Supreme Court dismissed appeals by Power Grid Corporation of India and NTPC Limited challenging a regulatory decision on Foreign Exchange Rate Variation (FERV) apportionment. The Court held that FERV, once calculated under Tariff Regulations, should be recovered directly by utilities from beneficiaries without filing commission petitions, and should not be capitalized or apportioned between debt and equity. The Court found no statutory basis for debt-equity apportionment and reasoned that retroactive changes would unfairly burden consumers unrelated to historical transactions. The decision reinforced the regulatory framework enacted to reform the power sector.
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