The Central Electricity Regulatory Commission (CERC) has proposed a procedure for levying compensation charges to allow connectivity grantees additional time to meet certain milestones under the General Network Access (GNA) Regulations, 2022.

Stakeholders can submit their feedback by April 30, 2026.

Under the proposed procedure, entities that have been granted connectivity may be allowed additional time to meet milestones related to submission of land documents, achieving and furnishing financial closure, and achieving the commercial operation date (COD), subject to specified eligibility criteria and payment of milestone extension charges (MEC).

For submission of land documents, the proposed MEC is ₹1,500 (~$16)/MW/day for the first month, increasing by 10% to ₹1,650 (~$18)/MW/day in the second month and by 20% to ₹1,800 (~$19)/MW/day in the third month. The maximum extension allowed for this milestone is three months.

For financial closure, the proposed MEC is ₹1,500 (~$16)/MW/day for the first three months, increasing by 10% in the fourth month, 20% in the fifth month, and 30% in the sixth month. The maximum additional time for financial closure is six months.

For achieving COD, the proposed MEC is ₹3,000 (~$32)/MW/day for the first six months of delay. This increases to ₹3,300 (~$35)/MW/day in the seventh month, ₹3,600 (~$39)/MW/day in the eighth month, and ₹3,900 (~$42)/MW/day in the ninth month. For delays beyond nine months and up to 12 months, the charge rises to ₹6,000 (~$64)/MW/day. The total extension period is capped at 12 months.

The draft procedure also prescribes milestone-specific eligibility conditions. To seek additional time for land-document submission, entities must furnish land documents for at least 20% of the required land.

For financial-closure extensions, entities under the land bank guarantee (BG) route must furnish land documents for at least 50% of the required land, while those under the letter of award (LOA) or power purchase agreement (PPA) route must furnish at least 25%.

For COD extensions, entities under the Land BG or land route must furnish land documents for 100% of the required land, while those under the LOA/PPA route must furnish at least 50%. In addition, entities must submit proof of financial closure and details of the engineering, procurement, and construction contract award.

In cases where the revocation date under Regulation 24.6 is triggered within two months of the GNA effective date, the MEC for the first two months after the GNA effective date will not apply to achieve COD. The Commission noted that developers require time after substation energization to carry out trial runs, pre-commissioning tests, and integration activities before declaring COD.

Entities seeking additional time must approach the nodal agency at least 15 days before the original milestone deadline and pay the applicable MEC in advance. If the eligibility criteria are not met, no extension will be granted, and connectivity will be treated in accordance with the GNA Regulations, including revocation and treatment of bank guarantees, as applicable.

The Commission has clarified that granting additional time will not alter the firm start date of connectivity, and the entity will remain liable for applicable mismatch charges under the Sharing Regulations, 2020. It has also specified that compensation charges collected will be credited to the Deviation and Ancillary Services Pool Account.

The proposal follows multiple petitions by entities that had either been served revocation notices or anticipated delays in meeting milestones. CERC noted that a uniform mechanism is required to address such cases while ensuring efficient utilization of connectivity, a scarce resource.

CERC earlier allowed certain renewable energy projects additional time to retain connectivity despite missing deadlines, while upholding the validity of revocation provisions under the GNA Regulations.

The Commission had then indicated that such relief should be accompanied by appropriate compensation to ensure that developers do not indefinitely hold on to scarce transmission capacity without progress.

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