JSA Advocates and Solicitors (JSA) secured a significant relief for Sarda Metals & Alloys Ltd. (“Sarda”) before the Supreme Court, obtaining an interlocutory order dated 18.08.2026 that stays the imposition of Grid Support Charges on Captive Power Plants (CPPs) for FY 2026–27. This paves the way for similarly placed CPPs across Andhra Pradesh which have been saddled with these charges to claim parity.
Vide Order dated 25.03.2026, the Andhra Pradesh Electricity Regulatory Commission (“APERC”) had authorized the AP Discoms to impose Grid Support Charges on co-located CPPs for FY 2026–27. This order was assailed before the Appellate Tribunal for Electricity (“APTEL”), which, by judgment dated 29.07.2026, declined to grant relief, relying on its earlier ruling on the same issue. A civil appeal was consequently preferred before the Supreme Court.
During the first hearing on 18.08.2026, the Supreme Court granted interim relief to Sarda and directed that the levy be stayed, subject to the appellant depositing 50% of the claimed amount.
Notably, in earlier civil appeals filed by JSA on behalf of Sarda, the Supreme Court had also granted similar stay orders on 21.10.2024, 11.11.2024 and 12.06.2025 in relation to the levy of Grid Support Charges for FY 2022-23 to FY 2025-26.
This interim order constitutes a welcome relief for CPPs that were otherwise required to pay the entire amount of the charges. This development is also likely to assist other similarly placed CPPs across the sector.
Our Disputes team comprised Poonam Verma Sengupta, Lead Partner; Saunak Rajguru, Principal Associate and Pradyumn Amit Sharma, Associate.
Poonam has been actively involved in the disputes and corporate practice of the firm with primary focus in the Energy and Transportation Sector. For around two decades with the firm, Poonam has specialized in Power and Aviation Sectors.