The Central Electricity Regulatory Commission (CERC) has upheld Central Transmission Utility of India’s (CTUIL) decision to cancel transmission connectivity for Inox Green Energy Services’ 300 MW wind projects at Bhuj II pooling substation in Gujarat.

The Commission directed the petitioner, Inox Green, to reapply for connectivity with CTUIL, since it had failed to demonstrate any progress in land acquisition or financial closure for the projects.

Background

In 2018, received a letter of award from Solar Energy Corporation of India (SECI) to set up 200 MW and 100 MW wind projects in Kutch, Gujarat, under Tranche III and Tranche IV auctions.

It formed six special-purpose vehicles (SPVs) for 300 MW and signed power purchase agreements with SECI.

Inox said that due to various factors beyond its control, the projects were delayed. SECI acknowledged the factors behind the delay by granting multiple extensions.

Inox said it has made considerable investments in executing the wind projects, including developing a 220 kV transmission line and substations, purchasing a 150 MVA transformer, and acquiring land for pooling substations.

SECI had extended the time for obtaining financial closure because the Gujarat government had delayed allotting land for the projects.

In 2020, in view of the delay in operationalizing the long-term access, SECI extended the time for financial closure and the scheduled commercial operation date (SCOD) from November 2019 to April 2020.

Further, SECI extended the SCOD by another 30 days due to the COVID-19 lockdown. In December 2020, SECI extended the SCOD until October 2021.

When SECI refused to grant further extensions, Inox approached the dispute resolution committee (DRC), which refused to grant any relief.

In 2022, CTUIL issued transmission connectivity under long-term access to the petitioner for its projects.

In 2024, the Power Ministry approved the installation of the dedicated overhead transmission line, including the transmission system.

Further, CTUIL sent a notice to Inox for the payment of one-time general network access (GNA) charges of ₹100,000 (~$1,119)/MW. It also issued an invoice for payment of bilateral charges of ₹80 million (~$895,280) against the transmission facility developed for the projects.

Inox said that CTUIL’s interconnecting common evacuation infrastructure was originally scheduled to be commissioned in 2019 but was rescheduled to 2022. The delay led lenders to refuse to fund the projects due to uncertainty over connectivity. It said that the delay in granting connectivity also increased the cost of wind turbine generators.

After multiple follow-ups with Inox, CTUIL invoked the bank guarantee, and the petitioner paid ₹30 million (~$335,730) toward one-time GNA charges.

In 2025, CTUIL also revoked the project’s connectivity and withdrew the GNA granted to the petitioner.

SECI said that, since the projects were not commissioned even six months after the SCOD, i.e., February 2023, the developer was liable to pay liquidated damages.

SECI recovered the liquidated damages by encashing the performance bank guarantee submitted by Inox. However, SECI did not cancel the PPAs.

SECI added that if the petitioner commits to completing the wind projects and the utilities purchase power in accordance with the tariffs set out in the PPAs, it will enter into a tripartite agreement and consider a mutual settlement proposal.

The petitioner approached the Commission to issue an appropriate direction to the respondents to refrain from revoking the 300 MW Stage II connectivity and long-term access. Alternatively, it pleaded with the Commission to allow it to retain the 300 MW of connectivity granted through the land bank guarantee route.

It also sought directions to CTUIL to reserve the 300 MW connectivity at the 220 kV Bhuj pool and not allot it to any other entity.

The petitioner also asked the Commission to prevent any coercive action against it for failing to commission the 300 MW of projects and to prevent the imposition of any penalties.

Commission’s Analysis

The Commission said the petitioner failed to submit documents proving that the projects were completed within the extended scheduled date and that financial closure had been reached.

The Commission noted that the DRC examined the projects’ progress and found that the petitioner failed to justify the delay in their execution. It said that Inox’s inability to complete land acquisition or achieve financial closure on the projects demonstrated a lack of seriousness..

The petitioner was unable to submit details of land acquisition for the projects, and the DCR found no merit in its plea for a further extension of the SCOD,

The Commission said that Inox delayed approaching the Commission by three months, even after the DRC issued an unfavorable report.

The Commission noted that the petitioner has been holding onto the connectivity for six years. CTUIL should have revoked the connectivity when it failed to commission the projects by 2023.

Upholding CTUIL’s decision to revoke the connectivity, the Commission ordered Inox to apply afresh for connectivity with CTUIL.

Recently, the government directed renewable energy implementing agencies to close all legacy bids and cancel the letters of award for all renewable energy projects for which PPA and power sale agreements are not feasible by November 30, 2025.

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