Deal: Supreme Court modifies Great Indian Bustard Order

Trilegal represented Wind Independent Power Producers Association (Wind Power Developers) before the Supreme Court regarding modification of order mandating undergrounding of transmission lines in GIB Areas.

By its Order dated 21.03.2024, the Supreme Court has modified its earlier Order dated 19.04.2021, wherein it had demarcated the Priority Area and Potential Area of Great Indian Bustard (GIB) habitat spanning more than 80,000 sq. kms in the State of Rajasthan and Gujarat. In terms of Order dated 19.04.2021, the Supreme Court had mandated undergrounding of high and low voltage transmission lines in the said areas, subject to feasibility. As a result, renewable energy generating companies, operating around 50 GW of capacity, valued at around INR 1.5 lakh Crore, in these areas were required to bear additional capital expenditure for undergrounding of their transmission lines and faced regulatory uncertainty for recovery of the additional expenditure.

Trilegal advised and filed an application for modification of the Order dated 19.04.2021 on behalf of the Wind Independent Power Producers Association (WIPPA) / wind generators citing the technical, operational and other challenges in undergrounding. Similar applications were also filed by the Union of India, State of Rajasthan and Gujarat and the Solar Developers.

Post hearing all parties, the Supreme Court, recognising the need for balancing the interest of GIB as well as the interest of renewable sector and India’s commitments to reduce emissions, has: (i) restricted the injunction of undergrounding only to the Priority Area (13,163 sq. kms), subject to feasibility to be determined by the Expert Committee; and (ii) eased the restrictions in the Potential Area. The Supreme Court also noted the technical and operational challenges and the overall impact on the RE generation capacity located in Rajasthan and Gujarat.

The Supreme Court has also reconstituted and expanded the Expert Committee to inter-alia include representatives of the power sector, to ascertain the technical feasibility of undergrounding of High Voltage as well Low Voltage transmission lines in the Priority Area and to lay down suitable directives for laying of transmission lines in the Potential Area. The Supreme Court further directed the Central Government to take necessary measures for conservation and protection of GIB.

The Union of India was represented by the Attorney General, Solicitor General and the Additional Solicitor General. Vishrov appeared for the Wind Generators.

The Order will have significant impact on the renewable sector since the entire region (Priority and Potential Area) in the State of Rajasthan and Gujarat has significant solar and wind potential of around 263 GW, out of which only 3% has been tapped so far. This Order has granted significant relief to the renewable sector including wind generators located in the Priority and Potential Areas, which in terms of the earlier Order, were mandatorily required to underground high and low voltage transmission lines and would have incurred huge expenditure and would have faced loss of revenue due to shutdown of projects for undergrounding of lines. Easing of the restrictions, specifically in the Potential Area, would also facilitate early commissioning of the renewable projects which got delayed or were left stranded due to the restrictions placed in the earlier Order.

The Trilegal team was led by our Disputes Partner Vishrov Mukerjee and supported by lawyers Janmali Manikala, Counsel; Girik Bhalla, Senior Associate; and Damodar Solanki, Associate.

Media link:

https://webapi.sci.gov.in/supremecourt/2019/20754/20754_2019_1_25_51677_Order_21-Mar-2024.pdf

About Trilegal

Trilegal is one of India’s leading law firms, with expertise across the full spectrum of corporate legal services. Trilegal has offices in four key cities of India.

Trilegal has been recognised as the India Deal Firm of the Year by Asian Legal Business (ALB) India Law Awards 2023; one of the ‘Best Overall Law Firms’ at the India Business Law Journal Indian Law Firm Awards 2022; ‘Firm of the year’ for Client Service Excellence by Asia Law Awards 2021; “M&A Law firm of the Year” by VCCircle Awards 2020 one of the most innovative law firms in Asia in the inaugural edition of ALB Trailblazers 2020; and ‘highly commended’ in the FT RSG Innovative Lawyers Awards 2020.

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Sahil Wason
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