The Central Electricity Regulatory Commission (CERC) has disposed of a petition filed by Welspun Narmada Private Limited, a subsidiary of Welspun Renewable Energy Private Limited, regarding its proposed 250 MW Wind-Solar Hybrid Power Project in Bidar, Karnataka. The company had approached the Commission seeking an extension of time to achieve financial closure under the Connectivity and General Network Access (GNA) Regulations, 2022.
Welspun Narmada had applied for connectivity to the Inter-State Transmission System (ISTS) in April 2024 and received in-principle approval from the Central Transmission Utility of India Limited (CTUIL) in July 2024. As part of the connectivity requirements, the company submitted a Land Bank Guarantee of ₹25 crore and Connectivity Bank Guarantees totaling ₹8.5 crore.
According to the connectivity agreement, the project’s connectivity start date was February 28, 2026. Based on this timeline, the company was required to submit proof of financial closure by September 11, 2025. However, the project faced uncertainty due to delays in the development of the evacuation infrastructure required for power transmission.
Power Grid Corporation of India Limited was responsible for constructing the required 220 kV line bay and pooling substation at Bidar. The expected commissioning date of this infrastructure was later postponed from February 2026 to June 30, 2026. Due to concerns about investing in a project without certainty on transmission readiness, Welspun delayed its financial closure process.
Although the company eventually achieved internal financial closure on November 13, 2025, which was 77 days after the prescribed deadline, further technical studies indicated that wind power generation was no longer commercially viable at the proposed project location. As a result, the company’s board decided to discontinue the project.
On January 19, 2026, Welspun submitted a formal request to CTUIL seeking withdrawal of its connectivity application under Regulation 3.7.3 of the GNA Regulations. Initially, CTUIL did not process the request due to interim status-quo directions issued during the proceedings before CERC. Later, both parties clarified that the withdrawal could be handled under the existing regulatory provisions.
In its final order dated June 3, 2026, the Commission observed that since the company had voluntarily decided to withdraw the project, the issue relating to the extension of time for financial closure no longer remained relevant. CERC directed CTUIL to process the withdrawal application in accordance with the GNA Regulations.
The Commission also permitted Welspun to use the provisions of Regulation 3.8, allowing it to make an online cash payment towards the forfeited portions of its guarantees instead of facing bank guarantee encashment. CTUIL has been directed to calculate and communicate the payable amount within 10 days, after which the remaining bank guarantees will be returned and the application will be formally closed.
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