VidhiSangh

Supreme Court of India · 01/01/2025

MUNICIPAL CORPORATION OF DELHI versus GAGAN NARANG & ORS. ETC.

[2025] 1 S.C.R. 239 · 2025 INSC 2

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Summary

The Supreme Court held that Section 63 of the Electricity Act, 2003 does not confine applications for adoption of a bid-discovered tariff to distribution licensees or generating companies. Read literally and in harmony with Section 86(1)(b), it allowed the Municipal Corporation of Delhi, setting up a waste-to-energy plant under its duty in the Solid Waste Management Rules, 2016, to seek tariff adoption from the Delhi Electricity Regulatory Commission. APTEL's contrary ruling was set aside and DERC's orders restored.

Issues

  1. Whether a local authority such as the Municipal Corporation of Delhi, which is neither a distribution licensee nor a generating company, could apply to the State Commission under Section 63 of the Electricity Act, 2003 for adoption of a tariff discovered through competitive bidding.
  2. Whether Section 63 must be read in harmony with the State Commission's regulatory functions under Section 86(1)(b) and (e) and with the municipal duty to set up waste-to-energy facilities under Rule 15 of the Solid Waste Management Rules, 2016.
  3. Whether APTEL was right to set aside DERC's orders rejecting the challenge to MCD's tender and approving the bid tariff of Rs. 7.38/kWh.

Provisions considered

Held

Result

Appeals allowed; APTEL's common judgment dated 31.08.2023 in DFR Nos. 245 and 247 of 2023 set aside, and DERC's orders dated 06.03.2023 in Petition No. 65 of 2022 and 07.03.2023 in Petition No. 72 of 2022 affirmed.

Judgment PDF: Supreme Court of India, [2025] 1 S.C.R. 239.