Parliament Question: Power Sector Litigations

GOVERNMENT OF INDIA MINISTRY OF POWER LOK SABHA UNSTARRED QUESTION NO.801 ANSWERED ON 23.07.2026 POWER SECTOR LITIGATIONS 801. SMT. ROOPKUMARI CHOUDHARY: Will the Minister of POWER be pleased to state: (a) the details of the total number of litigations relating to the power sector pending across the country, State-wise; (b) the details of such litigations pending before the Supreme Court, High Courts, the Appellate Tribunal for Electricity (APTEL), the Central Electricity Regulatory Commission (CERC), State Electricity Regulatory Commissions (SERCs), forum- wise and other judicial or quasi-judicial authorities along with the major issues involved therein; (c) whether the Government has assessed the financial and operational impact of such litigations on the power sector; (d) if so, the details thereof including the estimates of the value of claims involved, State-wise; and (e) the measures taken or proposed to be taken by the Government to expedite the resolution of power sector disputes, reduce litigation and strengthen institutional mechanisms for dispute resolution across the country? A N S W E R THE MINISTER OF STATE IN THE MINISTRY OF POWER (SHRI SHRIPAD NAIK) (a) & (b): As per the information available with the Ministry of Power through the Legal Information Management and Briefing System (LIMBS) of the Department of Legal Affairs, Ministry of Law and Justice, approximately 1,303 court cases involving the Ministry were pending before various judicial forums. In addition, as on 30th June, 2026, around 2,911 matters were pending before the Appellate Tribunal for Electricity (APTEL). Similarly, 1,193 petitions were pending at Central Electricity Regulatory Commission (CERC) as on 30th June, 2026. These cases relate to a wide range of issues in the electricity sector, including General Network Access (GNA), connectivity, compensation for Right of Way requirements for laying transmission lines, compliance with the Indian Electricity Grid Code (IEGC), Power Purchase Agreement (PPA) enforcement and other contractual disputes, Change in Law claims, tariff determination and true-up of tariffs, Force Majeure claims, and matters relating to the Deviation Settlement Mechanism (DSM), among other regulatory and commercial issues. ………2.- 2 - (c) & (d): The financial and operational implications of these cases vary depending on the nature of the dispute, the parties involved, and the stage of adjudication. Since each case is decided on its own facts and merits, it may not be feasible to quantify the overall financial or operational impact. The actual implications are contingent upon the final outcome of the proceedings and the directions issued by the concerned courts, Appellate Tribunal or Regulatory Commission. (e): (i) Electricity Act, 2003 (“Act”) provides a comprehensive institutional framework for dispute resolution in the power sector. Under Sections 79 and 86 of the Act, CERC and State Electricity Regulatory Commissions (SERCs), respectively, are empowered to adjudicate disputes involving entities within their jurisdiction or to refer such disputes for arbitration. (ii) Under Section 110 of the Act, the Central Government has established the APTEL to hear appeals against the orders of the adjudicating officer and the Regulatory Commissions. Section 125 provides that any person aggrieved by a decision or order of APTEL may file an appeal before the Supreme Court of India within sixty days from the date of communication of such decision or order. (iii) Section 158 of the Act empowers the Regulatory Commission to nominate arbitrators for arbitration of disputes referred under the Act. (iv) Special Courts have been constituted/designated in the States in accordance with the provisions of the Act for the speedy trial of offences under the Act. (v) A dispute avoidance mechanism through the engagement of an Independent Engineer has been put in place for hydro projects executed by Central Public Sector Undertakings (CPSUs) under the Ministry of Power to facilitate early resolution of contractual issues and prevent disputes at the inception stage. (vi) Ministry of Power has established the Conciliation Committee of Independent Experts (CCIE) to provide a fast-track, amicable alternative dispute resolution process for contractual disputes in projects implemented by CPSUs and statutory bodies under the control of the Ministry. (vii) To reduce disputes relating to the laying of transmission lines and Right of Way (RoW), Ministry of Power has issued guidelines for compensation towards damages caused during transmission line construction. These guidelines are reviewed and revised periodically to address stakeholders' concerns and facilitate timely implementation of transmission projects. (viii) CERC has implemented the "SAUDAMINI" e-Court initiative to facilitate end- to-end digital management of regulatory proceedings. (ix) APTEL has introduced virtual hearing facility, thereby improving accessibility, convenience, and the efficiency of judicial proceedings. **************