CERC Grants Limited Relief For 700 MW Maharashtra Solar Project Amid CTUIL Connectivity Delay

The Central Electricity Regulatory Commission (CERC) has issued a significant order in a dispute involving Waaree Forever Energies Private Limited (WFEPL) and the Central Transmission Utility of India Limited (CTUIL) concerning the 700 MW Salgar Solar Power Project in Solapur, Maharashtra.

The project was originally planned as a 1,000 MW solar development. However, WFEPL reduced the capacity to 700 MW due to limitations in available transmission margins at the Solapur substation. The company received an in-principle connectivity approval in December 2024. However, the final connectivity approval from CTUIL was issued only on August 28, 2025, several months later than expected. Despite the delay, the connectivity start date remained fixed at March 31, 2026.

According to the CERC General Network Access (GNA) Regulations, project developers are required to achieve financial closure at least six months before the connectivity start date. Due to the delayed issuance of the final connectivity approval, WFEPL was left with only a little over one month to meet the financial closure requirement before the September 30, 2025, deadline.

The company approached the Commission seeking relaxation of the regulations. It requested an extension of the connectivity start date to September 2027, along with a corresponding extension of the financial closure timeline. WFEPL argued that the situation arose due to circumstances beyond its control and that the compressed timeline created serious financial and operational challenges.

The developer also highlighted its substantial investment in the project. It informed the Commission that it had already invested around ₹95.72 crore and committed more than ₹4,132 crore toward the solar and energy storage project. In addition, approximately 1,600 acres of land had been acquired, and a Letter of Award worth ₹1,140 crore had been issued to the EPC contractor.

CTUIL, on the other hand, stated that it did not have the authority under the GNA Regulations to modify connectivity dates or provide staggered timelines.

In its order, the Commission criticized CTUIL for the delay in issuing the final connectivity approval. CERC noted that the regulations require the final grant to be issued within 15 days of receiving the required bank guarantees. The seven-month delay, according to the Commission, was not in line with the regulatory framework and created unrealistic expectations for the developer.

However, CERC clarified that the regulations do not permit any extension of the connectivity start date. As a result, WFEPL’s request to shift the connectivity date was rejected.

At the same time, the Commission provided limited relief by granting WFEPL a 30-day grace period from the date of the order to submit financial closure documents for the initial 300 MW phase without penalty. A further 60-day extension will attract a 5% delay charge on the bank guarantee value. If the company fails to comply within the total 90-day period, its connectivity approval will be revoked and the bank guarantees will be encashed.