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APTEL Sets Aside MERC Approval, Citing Material Change in Bid Conditions

SCC Online Blog
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Summary

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  • The Appellate Tribunal for Electricity (APTEL) has set aside the Maharashtra Electricity Regulatory Commission's (MERC) approval of a 2000 MW Battery Energy Storage System procurement, citing a material change in bid conditions post-bidding.
  • APTEL ruled that the Ministry of Power's requirement for MSEDCL to retain a right to utilize the system for at least 6300 cycles altered the basis on which bidders submitted their financial bids.
  • The Tribunal emphasized that such changes after the bidding process violate established legal principles, effectively vitiating the competitive bidding process.
  • This decision could have significant implications for future bidding processes, reinforcing the need for transparency and consistency in procurement conditions.

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