CERC Restores 600 MW Grid Connectivity, Imposes Penalties For Regulatory Violations In Mandsaur And Solapur

The Central Electricity Regulatory Commission has issued an important order in a dispute involving renewable energy developers Ganeko One Energy Pvt. Ltd. and Ganeko Two Energy Pvt. Ltd., and the Central Transmission Utility of India Ltd.. The matter relates to the cancellation of grid connectivity for two 300 MW projects located in Mandsaur and Solapur.

The issue started when both companies tried to use and interchange their eligibility documents, specifically the Letters of Award (LoAs) issued by SJVN Ltd. Ganeko-1 had originally secured connectivity for its Mandsaur project using a Base LoA. Ganeko-2, on the other hand, had obtained connectivity for its Solapur project under a land-bank guarantee route.

Complications arose when Ganeko-1 amended its Base LoA to shift the project location from Mandsaur to Solapur and nominated Ganeko-2 as the implementing entity. Ganeko-2 then attempted to use the same Base LoA to convert its existing connectivity route. This led CTUIL to issue show-cause notices to both companies, alleging that they had concealed important information and violated regulatory undertakings by using the same document for two different connectivity approvals.

After reviewing the matter, CTUIL concluded that the actions of the companies did not amount to fraud or intentional wrongdoing. However, it found that there was a clear breach of regulatory norms. It was observed that Ganeko-1 failed to maintain valid eligibility for its Mandsaur project for a considerable period after modifying its LoA. It also noted that Ganeko-2 tried to depend on a document that had already been used by its parent company. Based on these findings, CTUIL revoked the connectivity for both projects through letters issued on December 16, 2025.

The Commission later examined whether this strict action should continue, especially considering the progress made by the developers. It noted that significant investments had already been made, around ₹76.5 crore in the Mandsaur project and ₹82 crore in the Solapur project. The developers had also secured a substantial portion of the required land.

Taking a balanced approach, the Commission decided to set aside the revocation orders to avoid cancellation of the projects and wastage of transmission capacity. However, it imposed financial penalties on both companies for their regulatory lapses. Ganeko-1 has been directed to pay ₹50,000 per MW as a non-refundable fee, along with a penalty equal to 5 percent of the Land-BG amount and an additional one-time charge of ₹50 lakh. Ganeko-2 has been asked to pay a one-time charge of ₹50 lakh.

The Commission also laid down clear conditions. Both companies must ensure that their land documents are valid and complete. It also stated that the same LoA or power purchase agreement from this bid cannot be used again for any future connectivity changes.

In addition, the Commission advised agencies such as SJVN to be more careful while making changes to LoAs, so that such documents are not used more than once for securing grid connectivity.