GERC Allows Amendment In Liquidated Damages Dispute Over 200 MW Solar Project In Gujarat

The Gujarat Electricity Regulatory Commission (GERC) has allowed Martial Solren Private Limited to amend its petition in an ongoing dispute with Gujarat Urja Vikas Nigam Limited (GUVNL) concerning a 200 MW solar power project in Aravalli district, Gujarat. The order was issued on September 23, 2026, by a bench comprising GERC Chairman Pankaj Joshi and Member Jatin N. Thakkar.

The amendment allows Martial Solren to formally seek a refund of liquidated damages recovered by GUVNL, along with applicable interest and carrying costs. The developer has also been permitted to include prayers concerning billing for electricity supplied before the revised commercial operation date (COD).

Martial Solren had entered into a Power Purchase Agreement (PPA) with GUVNL on December 15, 2022, for the supply of electricity from its 200 MW solar project. The original Scheduled Commercial Operation Date (SCOD) was February 6, 2025. The project was planned to be commissioned in multiple 50 MW tranches.

The first 50 MW tranche was commissioned within the scheduled timeline. However, the remaining 50 MW tranches experienced delays ranging between 96 and 171 days. The entire 200 MW project was eventually commissioned on July 26, 2025.

Martial Solren attributed the delays to unforeseen Force Majeure events and approached GERC through Petition No. 2460 of 2025, seeking an extension of the project’s scheduled operational deadline.

While the main petition was pending, GUVNL recovered approximately Rs 9.18 crore in liquidated damages from Martial Solren for delayed commissioning. Following the recovery, the developer filed Interlocutory Application (IA) No. 62 of 2026, requesting permission to amend its original prayers.

The developer, represented by Senior Advocate Rashesh Sanjanwala, argued that the recovery of liquidated damages was a subsequent development directly connected to the main dispute. It sought a refund of the recovered amount with carrying costs under Clause 6.3 of the PPA and recognition of July 26, 2025, as the final COD.

Martial Solren submitted that the proposed amendments were consequential to the original dispute and would help avoid separate proceedings over issues arising from the same project delay.

GUVNL opposed the amendment, represented by Advocate Shristi Khindaria. It argued that the pleadings had already been completed and that the developer was attempting to introduce new issues. GUVNL maintained that no valid Force Majeure events existed to justify an extension and that the developer had acknowledged the delay.

GUVNL also contended that Article 5.4 of the PPA applies to early part-commissioning before SCOD and does not cover delays occurring after the scheduled date. It further argued that the PPA contains no provision allowing interest on liquidated damages.

GERC, however, held that amendments to pleadings are intended to facilitate the complete determination of the actual dispute between parties. The commission observed that the liquidated damages recovery was directly linked to the central issues concerning the commissioning deadline and Force Majeure claims.

The commission clarified that allowing the amendment does not amount to deciding the claims on their merits. It will allow all interconnected issues to be examined together.

GERC directed GUVNL to submit its consolidated reply to the amended petition by October 8, 2026, while Martial Solren may file its rejoinder by October 22, 2026. The main petition will be taken up for hearing thereafter.