CERC Disposes of Welspun Narmada Petition; Permits Withdrawal of 250 MW Hybrid Project Connectivity

The Central Electricity Regulatory Commission (CERC) has issued an order regarding a petition filed by Welspun Narmada Private Limited, a subsidiary of Welspun Renewable Energy. The ruling permits the voluntary withdrawal of the connectivity application for a 250 MW wind-solar hybrid power project and officially disposes of the matter involving the Central Transmission Utility of India Limited (CTUIL).

Project Background and Scope

The proposed 250 MW wind-solar hybrid facility was planned for development in Bidar, Karnataka. The developer received in-principle connectivity approval for the project in July 2024. Under the initial regulatory status, the scheduled connectivity date for the project was established as February 28, 2026.

Transmission Infrastructure Delays and Commercial Uncertainty

The petition followed delays in the development of the evacuation and transmission infrastructure at the Bidar pooling station. Power Grid Corporation of India Limited (PGCIL) is the agency responsible for the development of this infrastructure.

According to submissions made by CTUIL to the Commission, the readiness timeline for the transmission system at Bidar was revised as follows:

The Commission noted that these revisions introduced commercial uncertainty regarding the project’s viability and the developer’s ability to maintain financial closure timelines.

Evolution of the Petition and Final Decision to Withdraw

The petitioner’s regulatory actions involved several milestones leading to the final order:

• Initial Filing: Welspun Narmada originally sought an extension of time to achieve financial closure for the project.
• Financial Milestone: The developer achieved financial closure on November 13, 2025, representing a 77-day delay.
• Formal Withdrawal: On January 19, 2026, the petitioner submitted a request to withdraw the connectivity application under Regulation 3.7.3 of the GNA Regulations.

Welspun cited the following reasons for the withdrawal request:

• Uncertainty regarding the readiness of the required transmission infrastructure at the Bidar pooling station.
• The absence of a firm and communicated connectivity start date.
• The impact of these infrastructure delays on the commercial viability of the project.

Regulatory Outcome and Directives to CTUIL

The Commission ruled that because the petitioner sought to withdraw its application, the original request for a timeline extension is no longer eligible for adjudication. Consequently, CERC issued the following directives to CTUIL:

• Process the formal withdrawal in accordance with the applicable Connectivity and General Network Access (GNA) Regulations.
• Calculate and communicate the specific payable amount for the forfeited portions of the application to the developer within a 10-day deadline from the date of the order.
• Return the applicable bank guarantees to the developer following the receipt of the calculated payment.

Treatment of Bank Guarantees and Payments

Invoking Regulation 3.8 of the GNA Regulations regarding financial securities, the Commission permitted Welspun Narmada to make online cash payments in lieu of the physical encashment of bank guarantees for the forfeited portions of the application. The closure of the application is contingent upon the receipt of these payments by CTUIL.

Closing Administrative Facts

The CERC issued this order on June 3, 2026. With the issuance of these directives, the petition has been officially disposed of by the Commission.