CERC Order: Connectivity Extension and Financial Closure Relief for WFEPL 700 MW Salgar Solar Project

Ruling on Connectivity Start Date Extension

The Central Electricity Regulatory Commission (CERC) has passed a settled order regarding the petition filed by Waaree Forever Energies Private Limited (WFEPL) for its 700 MW Salgar Solar Project in Solapur, Maharashtra. The Commission dismissed the prayer for the extension of the connectivity start date from March 31, 2026, to September 30, 2027.

The dismissal is predicated on the “extant regulatory framework” of the General Network Access (GNA) Regulations, 2022. The Commission maintained that it lacks the authority to postpone a connectivity start date once the final grant has been formally determined. Emphasizing the necessity of “regulatory discipline,” the CERC ruled that the connectivity timelines established under the GNA framework must remain firm to ensure grid stability and equitable access for all stakeholders.

Regulatory Critique of CTUIL Administrative Delays

The Commission issued a formal rebuke of the Central Transmission Utility of India Limited (CTUIL), acting as the Nodal Agency, for its failure to adhere to statutory timelines and for exceeding its administrative mandate.

Procedural Timeline Comparison: CTUIL Administrative Lag

• Statutory Requirement: Final grant must be issued within 15 days of receipt of prescribed Bank Guarantees.
• Actual Processing Period: Nearly eight months.
• Primary Milestones: Bank Guarantees received January 2, 2025; Final Grant issued August 28, 2025.

The Commission noted that CTUIL’s engagement in prolonged, subjective discussions with the developer regarding a potential postponement created “untrue expectations” for the petitioner. The CERC clarified that the Nodal Agency is obligated to process applications “objectively” and has no authority under the regulations to delay the issuance of a final grant based on administrative correspondence or sought-after regulatory amendments.

Conditional Grace Period for Financial Closure

While refusing to alter the connectivity start date, the Commission acknowledged the project risks introduced by CTUIL’s administrative delays. Invoking its “Power to Relax” (Regulation 41) and “Power to Remove Difficulty” (Regulation 42) under the GNA Regulations, the CERC granted specific, time-bound relief for the project’s initial phase.

• One-Time Relaxation: A 30-day grace period from the date of the order is granted for the submission of financial closure documents for the first 300 MW phase.
• Penalty Structure for Subsequent Delays:
  • Day 1–30 Window: No penalty for document submission.
  • Day 31–90 Window: A delay charge equivalent to 5% of the Connectivity Bank Guarantee value shall be imposed on a pro-rata basis.
  • Beyond 90 Days: Immediate revocation of connectivity and encashment of all associated bank guarantees in accordance with the regulations.

Project Metrics and Investment Status

The project capacity was originally applied for at 1,000 MW but was subsequently modified to 700 MW due to identified transmission margin limits at the Solapur substation. This reduction forced the developer to completely restructure project financing, land acquisition, and infrastructure plans.

Final Disposition

The CERC has directed CTUIL to follow the GNA Regulations “in letter and spirit” and to strictly comply with the statutory timelines for the grant of connectivity. The Commission further warned that the Nodal Agency must not use “correspondence seeking regulatory amendments” as a justification for administrative delays. The Nodal Agency is mandated to act with transparency and objectivity to prevent the creation of false expectations that undermine the regulatory framework.