Determination of tariff by bidding process
Section 63 of the Electricity Act, 2003 deals with determination of tariff by bidding process. Notwithstanding anything contained in section 62, the Appropriate Commission shall adopt the tariff if such tariff has been determined through transparent process of bidding in accordance with the guidelines issued by the Central Government. The Act came into force on 10 Jun 2003.
Notwithstanding anything contained in section 62, the Appropriate Commission shall adopt the tariff if such tariff has been determined through transparent process of bidding in accordance with the guidelines issued by the Central Government.
Section 63, The Electricity Act, 2003 (Act 36 of 2003).
Cross-references
Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.
This section refers to
Related judgements & precedents
These are some judgments that construed this section, and hold precedence value. They hold authority on how to read, interpret and use this section.
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Rajasthan Urja Vikas Nigam Limited vs Mb Power (madhya Pradesh) Limited
Court's Decision & Legal Precedent
The Court construed the State Commission's role under Section 63 and Clause 5.15 of the Competitive Bidding Guidelines, holding that the adoption of a tariff discovered through bidding is not a mechanical act: the bid evaluation committee and the Commission may assess whether the quoted tariff is aligned with the market and may decline to adopt a tariff that is not, consumer interest prevailing over the generator's expected profit. It also held that the writ petitioners' invocation of Article 226 in the face of a statutory remedy, and their delay and laches, told against the relief claimed.
On this section: It settles the scope of the Appropriate Commission's power under Section 63 to refuse adoption of a bid-discovered tariff that is not market-aligned, rejecting the argument that Section 63 leaves the Commission no discretion.
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Uttar Haryana Bijli Vitran Nigam LTD vs Adani Power (mundra) Limited
Court's Decision & Legal Precedent
The Court dismissed the distribution licensees' appeals and upheld the concurrent findings of CERC and APTEL granting the generator Change in Law relief on account of the SHAKTI Policy coal allocation and Assured Coal Quantity, holding that in tariff matters arising out of competitively bid power purchase agreements the Court will defer to the considered view of expert regulatory bodies and will not re-appreciate their findings.
On this section: It fixes the standard of review over a Commission's Change in Law order in a Section 63 competitively bid PPA, holding such determinations to be for the expert regulator rather than the appellate court.
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Maharashtra State Electricity Distribution Company Limited vs Gmr Warora Energy LTD
Court's Decision & Legal Precedent
Where a power purchase agreement is entered into on a tariff determined by competitive bidding, the restitutionary principle in the Change in Law clause requires the generator to be restored to the economic position it would have occupied but for the change; the shortfall in domestic coal following the New Coal Distribution Policy 2013 and the consequent imported coal cost, and the related Station Heat Rate and GCV computation, were held to be compensable on that basis, the concurrent findings of CERC and APTEL being upheld.
On this section: It applies Section 63 by holding that a tariff adopted under that section is not frozen: the Commission retains power to allow Change in Law compensation under the bid documents and PPA without offending the competitive bidding framework.
The holding above is the ratio decidendi as extracted from the judgment by eCourts India, reproduced unaltered — it is a rendering of the court's reasoning, not a substitute for its words. Read the order itself before relying on it.
Made under this section, and citing it
1 instrument states that it was made under this provision — the power to make it comes from here, so a change to any of them changes what this section requires in practice. Newest first.
Another 3 instruments name this provision in its title or its text without being made under it.
Questions about Section 63
What have the courts held on Section 63 of the Electricity Act?
Rajasthan Urja Vikas Nigam Limited vs Mb Power (madhya Pradesh) Limited is the leading judgment on this section among those set out below: It settles the scope of the Appropriate Commission's power under Section 63 to refuse adoption of a bid-discovered tariff that is not market-aligned, rejecting the argument that Section 63 leaves the Commission no discretion. Another 2 judgments on this section are set out below, all of them from the Supreme Court.
How do I find court cases under Section 63 of the Electricity Act?
In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Electricity Act 2003 63, section 63 Electricity Act 2003, section 63 of the Electricity Act. People searching for it also type electricity act 2003 section 63 and electricity act 2003 section 62 63. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome. 3 reported judgments on this section are set out on this page, beginning with Rajasthan Urja Vikas Nigam Limited vs Mb Power (madhya Pradesh) Limited.
What should I read with Section 63 of the Electricity Act, and has it changed?
Its own text turns on section 62 (Determination of tariff), so none of them can safely be read on its own. The rules and notifications made under it are where it actually bites, and there is one: most recently Uttar Pradesh Electricity Regulatory Commission (Modalities of Tariff Determination) Regulations, 2023 (2023).
When did Section 63 of the Electricity Act come into force?
Section 63 of the Electricity Act, cited as Electricity Act 2003 63, came into force on 10 Jun 2003, having been enacted on 26 May 2003. It is in force as at the date shown on this page.
Other sections of this Act
Source and method. Compiled from the enactments of Parliament and of the State legislatures as published on India Code, and republished together with commentary and other original matter under section 52(1)(q)(ii) of the Copyright Act, 1957. Structured, cross-referenced and maintained by eCourtsIndia. Text as in force on 15 Oct 2026. This page is not a substitute for legal advice.