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2025 Supreme(Kar) 1158

IN THE HIGH COURT OF KARNATAKA AT BENGALURU
R. DEVDAS, J.
M/s. Rays Power Infra Limited - Appellant 
Versus 
The State Of Karnataka Department Of Energy - Respondent
Writ Petition No.35002 OF 2024 (GM-RES) C/W Writ Petition No.21533 OF 2024 (GM-RES)
Decided on : 09-09-2025

Advocates Appeared:
For the Appellant :SRI. GURUDAS S KANNUR., SR. COUNSEL FOR SRI. SHIVA KUMAR.C., ADVOCATE)
For the Respondent:SRI.REBUEN JACOB, AAG FOR SRI. MOHAMMAD JAFFAR SHAH, SRI. PIYUSH KUMAR JAIN D., SRI. S.S.NAGANAD., SR. COUNSEL FOR SMT.SUMANA NAGANAD., ADVOCATE, SRI. K. ARAVIND KAMATH., ASG A/W SMT. SADHANA S DESAI., SRI. K.G. RAGHAVAN., SR. COUNSEL FOR SRI. ARYAMAN GHULATI, PRITHU CHAWLA & SMT. RASHMI VAISH., SRI. UDAYA HOLLA, SR. COUNSEL A/W SRI. ROHAN SACHDEVA & SRI. SUDHEESH S KESARKAR., ADVOCATES, SRI. DEEP RAO PALEPU A/W SRI. SUDHEESH S KESARKAR., ADVOCATES

The requirement for renewable power park developers to obtain government authorization for connectivity is discriminatory, lacking clarity, and fails to create a level playing field with other applicants, violating constitutional principles of equality.

Headnote:(A) Electricity Act, 2003 - Section 2(30) - GNA Regulations, 2022 - Petitioners challenged the requirement of obtaining authorization for Renewable Power Park Developers, arguing it leads to discrimination, as it delays connectivity compared to other applicants - The court observed this requirement lacked clarity and imposed undue disadvantages on the petitioners. (Paras 3, 12, 16, 18)

(B) The court noted that requiring Park Developers to secure authorization from the State Government creates an unequal playing field and prevents timely access to connectivity, integral for their projects. (Paras 16, 19)

Facts of the case:
The petitioners sought to establish solar power parks and faced challenges in obtaining government authorization, which they argued unfairly prioritized other applicants. The court had previously directed the CTUIL to reserve capacities for the petitioners pending authorization. (Paras 2, 3, 4)

Findings of Court:
The court determined that the requirement for authorization imposed by the State Government is unjust and lacks necessary guidelines, leading to discrimination against the petitioners. The court extended interim orders reserving connectivity for the petitioners until they receive authorization. (Paras 19, 20)

Issues: The core issue was whether the requirement for authorization from the state for Renewable Power Park Developers was justifiable and did not create discrimination compared to other generating companies. (Paras 3, 12)

Ratio Decidendi: The court emphasized that absent clear guidelines and with existing distinctions between developers, the regulation unfairly disadvantaged the petitioners, violating principles of equality and a level playing field as recognized by the constitution. (Paras 15, 16)

Result: Writ petitions partly allowed, with directions extended for connectivity reservation until authorization is granted.

ORDER :

R DEVDAS, J.

The grievances of the petitioners in both these writ petitions being common and the respondents against whom directions are sought at the hands of the petitioners also being common, therefore, these two writ petitions were clubbed, heard together and are being disposed of by this common order.

2. Petitioner No.1 through its subsidiaries/Special Purpose Vehicles applied to the third respondent-Central Transmission Utility of India Limited (hereinafter referred to as ‘CTUIL’ for short) for connectivity, for establishing solar power parks, responding to the notification published by the CTUIL in its website, during the month of August 2024. Two sets of applications were filed in the name of three subsidiaries of the petitioners, seeking connectivity at Tumkur-II Sub-station for 300 MW and 290 MW respectively while also seeking connectivity at Ballari sub-station for 300 MW. Problems arose for the petitioners in seeking authorization at the hands of the Government of Karnataka which is a requirement in terms of regulation 5.8 (vii) (a) of the General Network Access Regulations, 2022 (for short ‘GNA Regulations’) notified by the Central Electricity Regulatory Commission (for short ‘CERC’).

3. The grievance of the petitioners, in a nutshell, is that the prescription of securing an authorization at the hands of the State Government applies only in case of applicants for establishment of Renewable Power Park or Renewable Power Park Developers and not in respect of applicants for grant of connectivity (applicants for connectivity or for enhancement of quantum of connectivity; generating stations including Renewable Energy Generating Stations (REGS), with or without Energy Storage System (ESS); captive generating plants; standalone ESS etc). In other words, two categories are made, segregating the renewable power park developers from all other categories. The mandatory requirement of securing authorization from the competent Government applies only in respect of Renewable Power Park Developers. Secondly, there is only one queue for both categories and seniority is based on the seniority of filing application. Thirdly, the other applicants can by-pass the Renewable Power Park Developers in seniority since the power park developers are yet to obtain an authorization at the hands of the competent Government. Fourthly, no guidelines are prescribed to the competent Government under the GNA Regulations for consideration and grant of authorization. The State Government is insisting on the petitioners to apply for a Government Order (for short ‘GO’) for grant of authorization. Although the petitioners have applied to the State Government for grant of authorization, the process of issuance of GO is tedious and the petitioners are forced to pay enormous charges for grant of GO. The issue has become more complicated since petitions have been filed by the Association of Energy Developers in a separate writ petition and interim orders have been passed by this Court in the matter of collection of fee for grant of GO. Fifthly, since the connectivity is limited in capacity, by the time the petitioners secure authorization at the hands of the State Government, the applicants in all other categories will be granted connectivity and the petitioners will be left high and dry.

4. Having regard to such grievance vented out by the petitioners, interim orders were passed by this Court on 16.01.2025 directing the third respondent-CTUIL to reserve 600 MW in Ballari and 890 MW in Tumkuru-II Grid sub- stations for allotment to the petitioners, while granting liberty to the third respondent to grant connectivity to other applicants barring the portion reserved for the petitioners, until further orders.

5. Learned Senior Counsel Sri G.S.Kannur appearing for the petitioners contended that the word ‘authorisation’ which is mandated in the impugned Regulations is not defined. There are no guidelines stipulated in the GNA Regulations guiding the State Gov

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