Petition of the CERC (Connectivity and General Network Access to the inter-State Transmission System) Regulations of VSUPL – EQ

Summary:

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## Key Business Details

| Parameter | Detail |
|———–|——–|
| **Petitioner** | VEH Saur Urja Private Limited (VSUPL) – Solar power generator |
| **Respondent** | Central Transmission Utility of India Limited (CTUIL) |
| **Project Capacity** | 81.9 MW (verge of commissioning) |
| **Original Connectivity Granted** | 162.3 MW (later revoked) |
| **Date of Revocation** | 25 February 2026 (via CTUIL letter) |
| **CERC Hearing Date** | 25 March 2026 |
| **Next Hearing Date** | 24 April 2026 |
| **High Court Order** | WP (C) No. 3662/2026 dated 20 March 2026 |

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## Background & Chronology of Events

1. **Earlier CERC Order (5 February 2026)** – Commission allowed VSUPL to carry out commissioning activities for its 81.9 MW capacity, irrespective of CTUIL’s actions on connectivity.

2. **CTUIL Revokes Connectivity (25 February 2026)** – Despite CERC’s earlier order, CTUIL revoked VSUPL’s connectivity of 162.3 MW. This left VSUPL unable to even **apply for T-GNA** (temporary access required to evacuate power after commissioning).

3. **VSUPL Files IA No. 44/2026** – Seeking direction that it may apply for T-GNA post-COD (Commercial Operation Date), subject to final outcome of main petition. However, this IA was **not yet listed for hearing**.

4. **VSUPL Approaches Delhi High Court (March 2026)** – Filed WP (C) No. 3662/2026 seeking urgent directions for power evacuation.

5. **High Court Order (20 March 2026)** – Directed CTUIL to permit VSUPL to carry out **all necessary formalities** for achieving commercial and post-commercial operation, and to consider its applications/information, **until CERC decides the interim application**.

6. **CERC Hearing (25 March 2026)** – CTUIL allowed to file additional reply within two weeks; VSUPL may file rejoinder within one week thereafter. High Court’s direction to continue until next hearing.

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## Business Implications

### For VSUPL (Solar Generator):
– **Urgent risk mitigated** – High Court order ensures you can complete commissioning and apply for evacuation.
– **But legal uncertainty remains** – Connectivity revocation is not yet overturned; final decision pending.
– **Cash flow at risk** – If connectivity is permanently revoked, the project may become stranded (no way to sell power).
– **Recommended action:** Accelerate commissioning and secure T-GNA under High Court protection before 24 April hearing.

### For CTUIL (Transmission Utility):
– **Directed to cooperate** despite revocation letter. Must process VSUPL’s applications.
– Can file additional reply to justify revocation – likely arguing non-compliance with connectivity terms or grid code.

### For Other RE Developers:
– This case highlights the **risk of connectivity revocation** even after CERC’s earlier protection orders.
– Strategy tip: If CERC interim relief is delayed, **approach High Court under writ jurisdiction** – as VSUPL successfully did.
– Monitor this case – outcome will set precedent on whether CTUIL can unilaterally revoke connectivity while commissioning is underway.

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## Strategic Recommendations

| Stakeholder | Action |
|————-|——–|
| **VSUPL Management** | 1. Expedite commissioning of 81.9 MW immediately. 2. Apply for T-GNA under High Court order. 3. Prepare strong rejoinder to CTUIL’s additional reply. 4. Be present at 24 April 2026 CERC hearing. |
| **CTUIL** | 1. File additional reply with clear technical/regulatory grounds for revocation. 2. Avoid contempt of High Court order – process VSUPL’s applications in good faith. |
| **Other RE Generators with similar connectivity risks** | 1. Review your connectivity letter terms. 2. If facing revocation during commissioning, consider immediate High Court remedy. 3. Track this case for precedent on T-GNA eligibility post-revocation. |
| **Investors/Lenders in VSUPL** | 1. Legal risk remains – monitor 24 April hearing closely. 2. Consider escrow or payment security mechanisms until final order. 3. Assess impact if connectivity is permanently lost – alternate evacuation routes? |

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