Crompton Greaves Consumer Electricals Ltd has secured a substantial contract from Maharashtra State Electricity Distribution Company Limited (MSEDCL) for solar water pumping systems. The Engineering, Procurement and Construction (EPC) contract is valued at ₹46.20 crore (excluding GST) and carries a completion timeline of 60 days from the date of Notice to Proceed (NTP).

Contract Details

The order encompasses comprehensive EPC services for 2000 solar photovoltaic water pumping systems under the MTSKYP/PM-KUSUM scheme. The contract includes design, manufacture, supply, installation, testing, and commissioning of Solar Photovoltaic Water Pumping Systems (SPWPS) with PV modules at various locations across Maharashtra.

Regulatory Disclosure

The company disclosed this order through a regulatory filing under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015. The order was received through a letter of empanelment from MSEDCL for EPC contracts across various locations in Maharashtra state.

Strategic Significance

This order reinforces Crompton Greaves Consumer Electricals' position in the renewable energy sector, particularly in solar-powered agricultural solutions. The contract with MSEDCL, a major state electricity distribution company, demonstrates the company's capability to handle large-scale infrastructure projects in the solar energy domain.

The project falls under the PM-KUSUM scheme, which is part of the government's initiative to promote solar energy adoption in the agricultural sector. Solar water pumping systems represent a critical component of sustainable agricultural infrastructure, providing farmers with reliable and cost-effective irrigation solutions.

Crompton Greaves Consumer Electricals Limited has disclosed receiving a partially adverse order from the Commissioner (Appeals) that upholds a GST demand of ₹3.34 crores for the financial year 2019-20. The company plans to file a further appeal against this decision.

Background of the GST Assessment

The matter originated from an assessment order passed by the Office of The Assistant Commissioner, South Zone, Baddi, Himachal Pradesh. The company had previously filed an appeal against this order before The Commissioner (Appeals).

Financial Impact and Demand Breakdown

The GST demand comprises multiple components as detailed below:

Nature of Violation

The demand has been raised on account of disallowance of input tax credit due to mismatch in GSTR3B and ITC appearing in GSTR2A. This represents a common GST compliance issue where discrepancies arise between different return forms filed by taxpayers.

Company's Response and Next Steps

Based on the merits of the matter, prevailing law, and advice from consultants, the company plans to file an appeal against this order under Section 112 of the SGST Act, 2017. The company has expressed reasonable expectation of receiving a favorable order from the appellate authorities.

Impact Assessment

Despite the potential monetary impact of ₹3.34 crores, the company has stated that there is no material impact on its financial, operational, or other activities.

Regulatory Compliance

The disclosure follows the requirements under SEBI regulations, ensuring transparency with stakeholders regarding material developments affecting the company.