Petition of CERC (Connectivity and General Network Access to the Inter-State Transmission System) Regulations for connectivity has been granted of SUCRL – EQ

Summary:

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## Key Business & Financial Impact

| Item | Amount |
|——|——–|
| **Land Bank Guarantee (Land BG)** | ₹40 Crore (₹10 lakh/MW × 400 MW) |
| **Connectivity Bank Guarantees (Conn BG1, BG2, BG3)** | ₹11.5 Crore total |
| **Total BGs at risk of encashment** | **₹51.5 Crore** |
| **Application fee forfeiture (if withdrawal under new option)** | 50% (balance 50% returned) |
| **Normal forfeiture (if no relief)** | 100% of Land BG + Conn BG1 + Conn BG2 (if ATS awarded) |

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## Core Legal & Regulatory Framework

### GNA Regulations, 2022 (Relevant Clauses)

| Regulation | Provision |
|————|———–|
| **5.8(vii)(c)** | Park developers can furnish Land BG in lieu of actual land acquisition. |
| **11A(1)** | Land documents to be submitted within 18 months of in-principle grant OR 12 months of final grant (whichever earlier). Land BG returned within 7 days of document acceptance. |
| **11B(1)** | Failure to submit land documents → connectivity revoked + Land BG encashed. |
| **3.7.3** | If applicant **voluntarily withdraws** after in-principle but before final connectivity: <br> – 100% application fee forfeited <br> – **5% of Land BG forfeited**, 95% returned <br> – Conn BG1 encashed <br> – Conn BG2 encashed only if ATS/terminal bay awarded <br> – Conn BG3 returned |
| **9.1** | Final grant must include coordinates, bay location, SLD, and start date. |
| **37.10(b)(i)** (Third Amendment) | Cases with in-principle grant before 3rd amendment (09.09.2025) but no final grant → shall be issued final grant under amended provisions. |
| **42** | Power to remove difficulty. |

### Third Amendment (effective 09.09.2025) – Key Change

**New proviso to Regulation 11A(1):**
If final connectivity is granted **without final or tentative coordinates**, the applicant gets **9 months from communication of tentative coordinates** to submit land documents (in addition to the original 18/12-month timeline).

### CERC Suo-Moto Order (Petition 14/SM/2025 dated 08.12.2025)

– **Clarified** that if **final grant is delayed by CTUIL** and no coordinates are furnished, the developer must be given **at least 9 months from communication of tentative coordinates** to furnish land documents.
– The **26.01.2026 deadline does not survive** in such cases.

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## Key Submissions & Findings

### SUCRL’s Key Arguments

1. **Impossible to acquire land without coordinates** – locating land within optimal distance of an unknown substation risks huge cost overruns or unviability.
2. **CTUIL’s delay** in finalizing Bikaner-V transmission scheme (including HVDC vs. EHVAC uncertainty) is solely attributable to CTUIL, not SUCRL.
3. **Bank Guarantees of ₹51.5 Crore** are blocked indefinitely due to CTUIL’s inaction.
4. **Regulation 3.7.3** provides that even if a developer *voluntarily withdraws*, only 5% Land BG is forfeited. SUCRL sought similar treatment without withdrawing.
5. **Track record** – SUCRL has already developed a 1000 MW solar park at Bhadla (500 MW operational), proving seriousness.

### CTUIL’s Key Arguments

1. **Transmission planning challenges** in Rajasthan:
– 179 GW RE potential declared; 163 GW in 4 districts (Jaisalmer, Jodhpur, Barmer, Bikaner).
– 130 GW connectivity applications received; 117 GW in those 4 districts.
– All nearby EHVAC corridors exhausted. Future evacuation requires **HVDC systems** (costly, 4-5 year implementation).
– Load-generation mismatch – very few drawal applications compared to injection applications.
2. **Bikaner-V scheme** – initially planned HVDC to Odisha, but that demand did not materialize. Alternate scheme under review by NRPC and NCT. Coordinates cannot be provided until scheme finalised.
3. **No regulatory provision to deny connectivity** – CTUIL cannot close applications unless competent authority denies approval.
4. **Similar issues** exist for multiple pooling stations: Bikaner-V, Barmer-III, Barmer-IV, Bhadla-IV, Bhadla-V, Ramgarh-II, Ramgarh-III, Jalore, Sanchore, Pali – aggregating ~60 GW.

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## CERC’s Decision & Key Directions

### Issue 1: Land Document Submission Timeline

✅ **Held**: As per 3rd Amendment and Order in 14/SM/2025, SUCRL will have **at least 9 months from communication of coordinates by CTUIL** to submit land documents.
❌ **Rejected**: SUCRL’s request for 12 months (instead of 9) or 18–24 months before start date.
❌ **Rejected**: Direction to CTUIL to transfer/reallocate connectivity to another substation – SUCRL may apply under **Regulation 11C** if eligible.

### Issue 2: Return of Bank Guarantees (Land BG & Conn BGs)

**Key Finding**: Regulation 3.7.3 (5% forfeiture) applies only to **voluntary withdrawal** by applicant. SUCRL cannot claim same benefit without withdrawing.

However, using **Regulation 42 (Power to Remove Difficulty)** due to **planning uncertainty** caused by CTUIL, CERC granted a **special one-time option**:

#### ✅ Option given to SUCRL (and similarly placed applicants):

> **Within 3 months of this Order**, SUCRL may **withdraw its connectivity application** and upon such withdrawal:
> – **Full Land BG (₹40 Crore) returned**
> – **Full Conn BG1, BG2, BG3 (₹11.5 Crore) returned**
> – **Only 50% of application fee forfeited** (balance 50% returned)
> – Return within **15 days of withdrawal**

> ⚠️ **If SUCRL chooses NOT to withdraw**:
> – Land BG and Conn BGs **continue to be retained** by CTUIL as per original regulations.
> – The 26.01.2026 deadline is **not enforceable** – SUCRL gets 9 months from coordinate communication.

### General Directions to CTUIL (for all similarly placed applicants)

– CTUIL shall, **within 30 days of this Order**, give **wide publicity** to this Order.
– For all applicants where CTUIL **cannot issue final grant of connectivity** due to planning issues cited in this petition:
– Give an **option to withdraw** connectivity application within **2 months** of CTUIL’s communication.
– Upon withdrawal: **return full Land BG + full Conn BGs**; forfeit only **50% application fee**.
– If applicant does not withdraw → BGs continue to be retained.

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