The Central Electricity Regulatory Commission (CERC) has directed the Central Transmission Utility of India (CTUIL) to process the application of a renewable energy project developer to withdraw connectivity for its proposed 250 MW wind-solar hybrid power project in Bidar, Karnataka.

The Commission said the issue of extending the timeline for achieving financial closure no longer applied after the company sought to withdraw its connectivity application.

Background

Welspun Narmada had filed a petition under Regulations 41 and 42 of the CERC Connectivity and General Network Access to the Inter-State Transmission System Regulations, 2022, seeking an extension of the deadline for achieving financial closure for the project.

The company had applied for connectivity to the interstate transmission system at the Bidar pooling station on April 16, 2024. CTUIL granted in-principle connectivity on July 22, 2024. The connectivity start date was February 28, 2026.

Under the GNA Regulations, Welspun Narmada was required to achieve financial closure at least six months before the scheduled commercial operation date or the start date of connectivity, whichever was later. CTUIL had asked the company to confirm the date of financial closure and provide supporting documents.

Welspun Narmada submitted that the final grant of connectivity had not been issued and that a firm start date of connectivity had also not been communicated under the amended GNA Regulations. It said proceeding with financial closure at that stage would expose it to financial risk due to uncertainty about the readiness of the Bidar substation and associated evacuation infrastructure.

CTUIL submitted that the Bidar substation and the required 220 kV line bay were part of the transmission program being implemented by POWERGRID. The scheduled commercial operation date for the substation and line bay was February 9, 2026, with an anticipated commissioning date of June 30, 2026.

During the proceedings, Welspun Narmada said it achieved financial closure through internal financing from group entities on November 13, 2025, and submitted proof to CTUIL on November 14, 2025.

CTUIL later submitted that the final grant of connectivity could not be issued because the company had not submitted the required study report showing maximum possible power injection into the grid.It said Welspun had later sought to change the project configuration from 100 MW solar and 150 MW wind to 250 MW solar with a 125 MW/750 MWh battery energy storage system.

On January 19, 2026, Welspun Narmada filed an application before CTUIL seeking withdrawal of its connectivity application under Regulation 3.7.3 of the GNA Regulations. The company also offered to pay the equivalent amount online instead of encashment of applicable bank guarantees under Regulation 3.8.

Welspun submitted that although in-principle connectivity had been granted and bank guarantees and financial closure documents had been submitted, the final grant of connectivity and the connectivity agreement had not been completed. It also cited uncertainty over transmission infrastructure readiness and commercial operation timelines.

Commission’s Analysis

CERC noted that Regulation 3.7.3 provides for the treatment of applications withdrawn after the in-principle grant of connectivity and before the final grant of connectivity. The regulation provides for forfeiture of the application fee and treatment of bank guarantees depending on the stage of withdrawal and the status of associated transmission systems or terminal bays.

The Commission also noted that Regulation 3.8 allows an applicant whose bank guarantee is required to be encashed to pay the equivalent amount online and seek return of the bank guarantee.

CERC directed CTUIL to process the withdrawal application under Regulation 3.7.3 and permit Welspun Narmada to furnish cash instead of bank guarantee encashment.

CTUIL must inform Welspun of the amount to be deposited within 10 days from the issue of the order. Welspun must deposit the amount within 10 days thereafter. If the company fails to deposit the amount, CTUIL can encash the amount from the bank guarantees.

The Commission directed CTUIL to close the connectivity application on receipt of the required amount and return the bank guarantees within 15 working days.

CERC recently proposed changes to the framework governing the deviation settlement, infirm power injection, and payment timelines.

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