The Commission proposes a uniform procedure to grant extensions for achieving connectivity milestones (land, financial closure, and COD) through the levy of Milestone Extension Charges (MEC), utilizing its regulatory powers to relax rules and remove hardships to prevent the revocation of connectivity.

PROPOSAL

Background

The Central Electricity Regulatory Commission (Connectivity and General Network Access to the inter-State Transmission System) Regulations, 2022 (hereinafter referred to as “the Principal Regulations”) were notified on 7th June, 2022, the first amendment, second amendment, and third amendment to the Principal Regulations were notified on 1st April, 2023, on 19th June 2024 and on 31st August 2025, respectively (hereinafter collectively referred to as “GNA Regulations”).

As per the provisions of the GNA Regulations, the Connectivity Applicants are required to achieve various milestones, viz (i) submission of land documents for the 50% of the land required for the Connectivity sought, (ii) Achieving Financial Closure, (iii) Achieving CoD of the project. Failure to achieve the milestones by the specified timelines results in revocation of the Connectivity granted to the Commission.

A number of entities, who were either served revocation notices or were fearing that such notice may be served on them for failure to achieve the milestones, have filed the Petitions before the Commission seeking additional time to achieve the milestones. The entities seeking such time are at various stages of implementation of the project, including some that are at an advanced stage.

A number of cases have been disposed of by giving additional time on payment of compensation, and a few cases are under adjudication. It is noted that there is an immediate requirement for handling such cases uniformly, which seek some additional time and who have made progress towards project implementation. It is noted that such entities have been holding on to the Connectivity, a scarce resource, and such additional time should be allowed with payment of compensation irrespective of the reasons for such delay, in a graded manner to ensure the earliest compliance with the milestones.

Accordingly, a Compensation Procedure defining the eligibility criteria for obtaining the additional time to achieve the respective milestones under the GNA Regulations and calculation of applicable compensation charges is proposed herewith.

The extracts of relevant Regulations, which require entity to meet specified milestones are quoted as under:

“11.A. Conditions subsequent to be satisfied by the Connectivity Grantee which is REGS (other than Hydro generating station) or ESS (excluding PSP) or Renewable power park developer

(1) An applicant which is REGS (other than Hydro generating station) or ESS (excluding PSP) covered under sub-clause (c) of Clause (xi) of Regulation 5.8 or Renewable power park developer covered under sub-clause (c) of Clause (vii) Regulation 5.8, shall submit documents for land in terms of sub-clause (b) of Clause (xi) or sub-clause (b) of Clause (vii) of Regulation 5.8 of these regulations, as the case may be, within 18 months of issuance of an in-principle grant of Connectivity or within 12 months of issuance of a final grant of Connectivity, whichever is earlier. The Bank Guarantee submitted under subclause (c) of Clause (vii) or under sub-clause (c) of Clause (xi) of Regulation 5.8 of these regulations shall be returned within 7 days of acceptance of the submitted land documents by the Nodal Agency.

Provided that, in case final grant of Connectivity has been intimated at an ISTS substation where neither the final coordinates nor the tentative coordinates are communicated along with final grant of Connectivity by the Nodal Agency, the applicant shall furnish the required land documents by later date of subclause (a) or (b) specified below:

(a) within 18 months of issuance of an in-principle grant of Connectivity or within 12 months of issuance of a final grant of Connectivity, whichever is earlier, or (b) within nine months from date of communication of tentative coordinate of the substation at which Connectivity has been granted in terms of clause (b) of Regulation 10.5 of these regulations.

(2