Petition of the CERC (Connectivity and General Network Access to the Inter–State Transmission System) Regulations for relinquishing the 250 MW capacity out of 500 MW connectivity capacity – EQ
Summary:
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### **Title of the Case**
**Inox Green Energy Services Ltd. (IGESL)**
vs.
**Central Transmission Utility of India Ltd. (CTUIL) & Anr.**
### **Subject**
Petition filed under **Section 79 of the Electricity Act, 2003** and **Regulations 41 & 42** of the **CERC (Connectivity and General Network Access to the Inter-State Transmission System) Regulations, 2022** —
seeking **direction to CTUIL to return ₹12.5 crore** held as **Construction Phase Bank Guarantee (BG)** for relinquished capacity.
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## 🏗️ **Background**
* **Connectivity Granted:**
500 MW capacity at **220 kV Bhuj Pooling Station**.
* **Relinquishment:**
* **250 MW** relinquished (50 MW under *Tranche-I* and 200 MW under *Tranche-II*).
* Connectivity relinquishment effective from **18.11.2023** after the 30-day notice period.
* **Reason:**
Termination of **Power Purchase Agreement (PPA)** between **IGESL** and **Solar Energy Corporation of India (SECI)**.
* **Petitioner’s Argument:**
IGESL sought the **return of ₹12.5 crore BG**, claiming CTUIL had confirmed relinquishment but continued to **retain the guarantee** citing pending directions from CERC.
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## 👩⚖️ **Proceedings on 17 October 2025**
**Coram:**
* Shri Jishnu Barua (Chairperson)
* Shri Ramesh Babu V. (Member)
* Shri Harish Dudani (Member)
* Shri Ravinder Singh Dhillon (Member)
**Represented by:**
* **For Petitioner (IGESL):** Shri Buddy A. Ranganadhan (Sr. Advocate) and team.
* **For Respondent (CTUIL):** Ms. Muskan Agrawal.
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## 🧾 **Key Directions Issued by the Commission**
1. **Petition Admitted:**
Notice issued to respondents.
2. **Replies & Rejoinders:**
* Respondents to file **replies within 6 weeks**, copy to petitioner.
* Petitioner may file **rejoinder within 4 weeks** thereafter.
3. **Petitioner’s Task:**
* File copies of **letters cancelling the 50 MW (Tranche-I)** and **200 MW (Tranche-II)** PPAs.
4. **CTUIL’s Obligations (within 3 weeks):**
* File a **detailed affidavit** explaining:
1. Why **Construction Stage BG** was retained, since the 500 MW Long-Term Access (LTA) was already **firmed up on 14.03.2019**, making such BG unnecessary per **Clause 24.1** of the 2009 Connectivity Regulations.
2. Provide copies of **relinquishment applications** (especially the one dated **19.10.2023**).
3. Explain why **earlier relinquishment letters dated 28.07.2023** were **not processed** under the 2009 Connectivity Regulations.
5. **Next Hearing:**
Scheduled for **11 December 2025**.
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## 🧩 **Legal and Regulatory Context**
* **Section 79 of the Electricity Act, 2003** empowers CERC to regulate inter-State transmission and adjudicate related disputes.
* The **CERC (Connectivity and GNA Regulations, 2022)** govern the process of granting, modifying, or relinquishing inter-State transmission access.
* **Clause 24.1** (2009 Connectivity Regulations) specifies conditions for requiring or releasing Bank Guarantees during project execution.
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