Panara Craft LLP, a recycled packaging paper manufacturer, has approached the Gujarat Electricity Regulatory Commission seeking a 90-day extension to commission its 7.8 MW captive solar power project in Gujarat. The project is divided into two 3.9 MW installations located in the Bharuch district and has faced delays mainly due to challenges in completing evacuation infrastructure and securing grid connectivity.
The issue arises under GERC’s Order No. 06 of 2024 and the Gujarat Renewable Energy Policy 2023, which require solar projects ranging from 1 MW to 100 MW to be commissioned within 12 months from the issuance of the Technical Feasibility Report (TFR). For Panara Craft, this deadline was April 22, 2025. However, the company could not meet the timeline due to delays in arranging project financing.
According to the company, it had initiated the loan process with the State Bank of India in March 2024, but the loan was sanctioned only in November 2024. The disbursement began even later, in February 2025, which significantly affected the pace of project execution. Panara Craft argued that these delays were beyond its control and should be considered as unavoidable circumstances.
The company also informed the Commission that a major portion of the project work has already been completed. Key technical activities such as pile drilling, casting, and structure mounting have reached full completion. It further stated that any strict action, like cancellation of connectivity or encashment of bank guarantees worth ₹39 lakh, would lead to serious financial losses.
On the other hand, the respondents, Dakshin Gujarat Vij Company Limited and Gujarat Energy Transmission Corporation Limited, opposed the request. They argued that the responsibility for timely project execution lies entirely with the developer. DGVCL stated that delays in loan disbursement cannot be treated as force majeure events and do not justify granting an extension. They also pointed out that the company did not provide enough proof of consistent follow-up with the bank.
After reviewing the case, GERC observed that the project had reached an advanced stage of completion. The Commission also referred to its earlier general order in Petition No. 2564 of 2025, which extended the timeline for completing evacuation infrastructure from 12 months to 18 months.
Considering these factors, the Commission allowed Panara Craft additional time and directed the company to complete all remaining technical and regulatory work within six months from the date of the order. This decision offers relief to the developer and provides an opportunity to complete the project and achieve grid connectivity without facing immediate penalties.
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