The Gujarat Electricity Regulatory Commission (GERC) has heard two interlocutory applications filed by HR Sabarmati Private Limited against Gujarat Urja Vikas Nigam Limited (GUVNL) and Gujarat Energy Transmission Corporation Limited (GETCO) concerning delays in the development of its 280 MW solar power project in Chharodi, Ahmedabad. The developer has sought interim protection against the encashment of bank guarantees and amendments to its original petition to include additional force majeure grounds for the project delays.
HR Sabarmati Private Limited signed a Power Purchase Agreement (PPA) with GUVNL on April 5, 2024, for supplying 280 MW of solar power. The Scheduled Commencement of Supply Date (SCSD) was set for April 4, 2026. However, the developer said several circumstances beyond its control had affected project execution and prevented it from meeting the scheduled timeline.
Through Interim Application No. 79 of 2026, the company sought protection against possible coercive action, including the encashment of Performance Bank Guarantees worth ₹64.96 crore by GUVNL and connectivity bank guarantees worth ₹28 crore by GETCO. It also expressed concerns over potential contract termination and blacklisting while its main petition seeking an extension was pending before the Commission.
The developer cited nine force majeure events that allegedly disrupted the project. These included delays in land acquisition and right-of-way clearances, administrative delays in obtaining statutory approvals under Sections 68 and 164 of the Electricity Act, 2003, and unseasonal rainfall and flooding across Patan, Junagadh and Kheda districts during 2024 and 2025.
Other reasons cited included security restrictions and labour migration during Operation Sindoor near the Indo-Pakistan border, uncertainty following amendments to Gujarat’s stamp duty framework, changes in district and taluka boundaries affecting land records, and repeated difficulties in securing transmission connectivity. Delays in finalising feeder bay locations and drawings at GETCO’s Bhesan substation were also identified as an obstacle. The developer further cited supply chain disruptions, raw material shortages and fuel price volatility linked to the West Asia geopolitical conflict.
Through Interim Application No. 80 of 2026, HR Sabarmati sought permission to amend its original petition to include the West Asia conflict as an additional force majeure event. The company referred to advisories issued by the Ministry of Finance and the Ministry of New and Renewable Energy recognising the potential implications of the crisis for project execution.
During the October 6, 2026, hearing, the developer told the Commission that it had invested more than ₹593 crore in the project, of which 35 MW had become operational, while work on the remaining capacity was progressing. It argued that encashing the bank guarantees before determining whether the delays qualified as force majeure would cause irreparable financial prejudice.
GUVNL and GETCO opposed the interim relief, maintaining that bank guarantees represented independent contractual obligations and should not be restrained merely because litigation was pending. GUVNL also argued that commercial unviability and increased land costs did not constitute force majeure.
Following directions from the Gujarat High Court in Special Civil Application No. 14209 of 2026, the GERC bench comprising Chairman Pankaj Joshi and Member Jatin N. Thakkar reserved both applications for orders. The Commission directed the parties to submit written arguments by October 13, 2026, while maintaining the interim status quo against coercive action and bank guarantee encashment.
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