CERC Rejects Interim Relief Plea In APPL Connectivity Dispute With CTUIL

The Central Electricity Regulatory Commission (CERC) has rejected a request for interim relief filed by Adyant Power Private Limited (APPL) and its parent company, Hexa Climate Solutions Private Limited (HCSPL), in a dispute related to grid connectivity for a 200 MW hybrid renewable energy project at the Mandsaur Pooling Substation. The order, issued on March 27, 2026, supports the position taken by the Central Transmission Utility of India Limited (CTUIL).

The matter arose after APPL initially secured connectivity for its project under the “Land Bank Guarantee (BG) Route.” As part of this route, the company was required to submit physical land documents by February 27, 2026. However, instead of fulfilling this requirement, HCSPL sought to convert the connectivity to the “Power Purchase Agreement (PPA) Route.”

This request was based on the fact that another group company, Hexa Energy MH10 Private Limited (HEMPL), had signed a PPA with the Solar Energy Corporation of India (SECI) for 100 MW capacity. The developers argued that since both APPL and HEMPL belong to the same corporate group, the PPA signed by HEMPL should be considered valid for APPL’s connectivity conversion.

CTUIL rejected this request, stating that the rules clearly require the same legal entity holding the connectivity to also fulfill all related conditions, including signing the PPA. The utility clarified that while group companies may share infrastructure for power injection, they cannot share compliance documents to meet regulatory requirements. CTUIL also warned that if APPL failed to submit the required land documents within the deadline, strict action could be taken, including cancellation of the connectivity.

In response, the petitioners approached CERC, arguing that CTUIL’s interpretation was too strict and did not reflect current business practices. They said that in modern renewable energy projects, different subsidiaries within a group often manage separate parts of development. They also pointed to recent changes in the Grid Network Access (GNA) Regulations, claiming these were meant to provide more flexibility.

However, the Commission did not accept these arguments. CERC explained that the term “utilization of connectivity” only applies to the physical act of injecting or drawing power from the grid. It does not include meeting regulatory or administrative requirements such as land ownership or signing a PPA.

The Commission further stated that the rules clearly define a “Connectivity Grantee” as the entity responsible for meeting all obligations. If a project is being executed by a particular company, then all key documents, including land records, financial closure papers, and the PPA, must be in that company’s name.

CERC concluded that the petitioners had misunderstood the regulations and failed to show a strong case for urgent relief. As a result, it refused to stop CTUIL from taking action. However, the main petition is still under consideration and may address broader legal issues in the future.