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Petition of CERC (Connectivity and General Network Access to the Inter-State Transmission System) Regulations of the land required from the date of grant of final connectivity – EQ

Petition of CERC (Connectivity and General Network Access to the Inter-State Transmission System) Regulations of the land required from the date of grant of final connectivity – EQ

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Summary:

##  Key Business Prayers by SUCRL

| Prayer | Description |
|——–|————-|
| **Prayer (a)** | Allow land document submission within 12 months of final connectivity / coordinates, not 18 months from in-principle grant. |
| **Prayer (b)** | Alternative: 18–24 months before scheduled start date (31 Dec 2029). |
| **Prayer (c)** | Alternative: Reallocate connectivity to another Bikaner substation with finalized location & 2027 start date. |
| **Prayer (d)** | Release Land BG & Conn BG 2 & 3; retain only 5% of Land BG (₹2 crore) + Conn BG1 as nominal security. |

##  CERC Analysis & Key Legal/Business Findings

### Issue 1 – Timeline for Land Documents

– **3rd Amendment to GNA Regulations (effective 9 Sept 2025)** introduced a **proviso to Regulation 11A(1)**:
If final connectivity is granted **without coordinates**, the developer gets **9 months from communication of tentative coordinates** to submit land documents.
– CERC’s own **Order dated 8 Dec 2025 in Petition 14/SM/2025** clarified:
> Even if final connectivity is delayed by CTUIL, developers must get **at least 9 months** from coordinate communication.

 **Decision on Issue 1:**
– The deadline of **26 Jan 2026 is set aside**.
– SUCRL will get **at least 9 months from communication of coordinates** by CTUIL.
– Request for **12 months** (instead of 9) – **not granted at this stage**.
– Request for reallocation to another substation – **not directed**; SUCRL may apply under **Regulation 11C** (transfer/reallocation provisions).

### Issue 2 – Bank Guarantees (Land BG & Conn BGs)

SUCRL argued:
– Delay is solely CTUIL’s fault.
– Under **Regulation 3.7.3**, if an applicant *withdraws* before final connectivity, forfeiture is only:
– 100% application fee
– 5% of Land BG
– Encash Conn BG1
– Return Conn BG2 & BG3 (if no ATS awarded)

 **Decision on Issue 2 – Unique Business Relief Granted:**

> CERC invoked **Regulation 42 (Power to Remove Difficulty)** and allowed:

1. **Option to withdraw** connectivity application within **3 months** of this order.
2. If withdrawn:
– Full Land BG (₹40 cr) + all Conn BGs returned within 15 days.
– Forfeiture: only **50% of application fee** (not 100%).
– Balance 50% fee returned.
3. If SUCRL **chooses to continue**:
– All BGs remain with CTUIL as per regulations.

##  General Direction to CTUIL (Impact on Other Developers)

CERC noted CTUIL’s submission that **~60 GW of connectivity applications** face similar issues (Bikaner-V, Barmer-III, Bhadla-IV, etc.) due to transmission planning challenges (lack of load centers, need for HVDC, etc.).

**CERC directed CTUIL to:**
– Within **30 days**, give a **similar withdrawal option** to **all such applicants**.
– If withdrawn:
– Full return of Land BG & Conn BGs
– Forfeiture of only **50% application fee**
– Give wide publicity to this order.

##  Final Disposition

– **Petition No. 666/MP/2025** and all IAs (**54/2025, 118/2025, 119/2025, 132/2025**) are **disposed of**.
– SUCRL gets a **clear, time-bound withdrawal option** with **minimal forfeiture**.
– If SUCRL continues, the original BG regime applies, but land document timeline is **extended via the 9-month rule** from coordinate communication.

For more information please see below link:

Anand Gupta Editor - EQ Int'l Media Network