HERC Orders Deemed Connectivity For 6 MW Captive Solar Project After HVPNL Delay In Haryana

The Haryana Electricity Regulatory Commission (HERC) has ruled on a petition filed by M/s BSL Casting against Haryana Vidyut Prasaran Nigam Ltd. (HVPNL) over delays in granting grid connectivity and Long-Term Open Access (LTOA) for a 6 MW captive solar power project in Hisar district, Haryana.

BSL Casting had established the 100% captive solar project to supply electricity to its industrial premises in Faridabad. The company submitted its online application for grid connectivity on March 6, 2026. Under the applicable HERC regulations and approved procedure, such applications are required to be processed within 30 days.

The petitioner approached HERC under Sections 142 and 146 of the Electricity Act, 2003, alleging that HVPNL had failed to comply with the prescribed timeline. BSL Casting sought a penalty of ₹1 lakh against HVPNL, ₹2 lakh towards litigation expenses, and deemed connectivity from the date of completion of the 30-day period.

HVPNL argued that the application became complete only on April 6, 2026, following submission of a corrected Bank Guarantee. The utility also contended that deemed approval provisions applied to Open Access and not to the preceding stage of grid connectivity. It cited internal administrative processes, including bay allocation proposals and approvals from Whole-Time Directors, as reasons for the delay.

HERC, however, took exception to these administrative delays and issued interim directions requiring HVPNL to grant connectivity. On June 26, 2026, the Commission approved deemed connectivity for BSL Casting with effect from May 6, 2026. HVPNL subsequently issued formal grid connectivity approval on June 30, 2026, followed by LTOA approval on August 19, 2026.

The Commission had also issued Show Cause Notices to senior HVPNL officials on July 10, 2026, citing the utility’s delayed compliance and its issuance of post-facto approval instead of recognizing the deemed connectivity.

In its final order, HERC rejected HVPNL’s interpretation that grid connectivity was outside the 30-day requirement. The Commission observed that connectivity is an essential antecedent to Open Access and held that internal administrative procedures cannot be used to bypass regulatory timelines.

HERC also directed HVPNL to streamline its approval process for LTOA applications. Instead of waiting for formal Whole-Time Director meetings, the utility was instructed to adopt a revolving file circulation mechanism among directors to reduce administrative delays.

While noting administrative lapses, bureaucratic inertia and red-tapism, HERC decided not to impose financial penalties. The Commission considered the extension of the MNRE ALMM exemption deadline to December 31, 2026. Since both connectivity and LTOA were granted before the revised deadline, the Commission concluded that BSL Casting had not suffered any financial or material loss. Accordingly, HERC discharged the Show Cause Notices without imposing monetary penalties.