The Uttar Pradesh Electricity Regulatory Commission (UPERC) has dismissed a petition filed by SAEL Solar P6 Private Limited seeking several exemptions and regulatory relaxations for its proposed captive solar power project in Uttar Pradesh.
SAEL Solar P6 is developing a 5 GW integrated photovoltaic (PV) cell fabrication facility and a 5 GW solar module manufacturing plant in Uttar Pradesh. The project involves an estimated investment of around ₹8,000 crore. The company received a Letter of Comfort from the Uttar Pradesh government in July 2025, allowing it to establish a captive power generation project to meet the electricity requirements of its manufacturing facility.
The company approached UPERC seeking a 100% exemption from transmission, wheeling and banking charges. It also requested permission to withdraw banked electricity without time-of-day restrictions. In addition, SAEL sought permission to install captive generation capacity beyond the existing limit of 125% of its contract demand.
SAEL argued that the requested exemptions were necessary to keep its manufacturing operations internationally competitive, particularly in a price-sensitive solar market.
However, Uttar Pradesh Power Corporation Ltd. (UPPCL) and Uttar Pradesh Power Transmission Corporation Ltd. (UPPTCL) opposed the petition. The utilities argued that granting special exemptions to a single company could create a separate regulatory framework and would not be consistent with existing statutory provisions.
UPPTCL said that waiving transmission charges for one entity could result in an unrecovered revenue gap for the utility. Such a gap could eventually place an additional financial burden on other electricity consumers. The utility also stated that the regulatory power to relax rules should be used only in cases involving genuine and exceptional hardship, rather than to reduce the commercial costs of an individual project.
UPPCL further pointed out that existing state policies provide for waivers of up to 50% on transmission and wheeling charges, rather than the 100% exemption sought by SAEL.
After considering the hearings and written submissions, the UPERC bench, comprising Chairman Arvind Kumar and members Sanjay Kumar Singh and Griesh Kumar Vaish (Law), rejected the petition.
The commission stated that although industrial development is important for the national interest, decisions relating to financial subsidies and special incentives are the responsibility of the state government. The regulator also observed that special rules cannot be created for the benefit of a single company at the expense of established regulatory principles and consumers.
On the request to exceed the 125% captive capacity limit, UPERC clarified that the regulations do not impose a restriction on total generation capacity. However, any electricity injected into the grid must comply with applicable open access regulations.
The commission advised SAEL to approach the Uttar Pradesh government if it seeks a change to the capacity limit specified in its Letter of Comfort. With these observations, UPERC dismissed the petition.
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