Reading Time: 2 minutes
In a recent development within the energy sector, Tata Power Renewable Energy Limited filed a petition under Section 79 of the Electricity Act, 2003, seeking relief under Regulations 41 & 42 of CERC (Connectivity and General Network Access to the Inter-State Transmission System) Regulations, 2022. The petition specifically addressed a request for the relaxation of the specified time for the submission of bank guarantees, allowing the petitioner to proceed with its projects.
Tata Power Renewable Energy Limited sought a deviation from Regulation 8.2 (c) of the Central Electricity Regulatory Commission (Connectivity and General Network Access to the Inter-State Transmission System) Regulations, 2022, and urged the Central Transmission Utility of India Limited (CTUIL) to accept the Bank Guarantees on its behalf. The petitioner, in the context of its Mudhol Wind Plant (288 MW) and Karur Wind Plant (198 MW), had previously applied to CTUIL for connectivity to the Inter-State Transmission System.
On November 30, 2023, CTUIL granted in-principle approval for the connectivity requested by Tata Power Renewable Energy Limited. The petitioner, having taken all necessary steps to comply with the regulatory framework, encountered delays in submitting a portion of the required Bank Guarantees due to reasons beyond its control. Despite the timely submission of Conn-BG-1 related to both connectivity applications, Connectivity Bank Guarantees 2 & 3 for both applications were submitted to CTUIL four days beyond the stipulated time.
During the hearing, CTUIL acknowledged that Tata Power Renewable Energy Limited was not the only party facing delays in submitting bank guarantees. Eight different project developers encountered similar issues. Notably, the Commission observed that while CTUIL is required to intimate the in-principle grant of Connectivity to the Applicant within 30 days, it was unable to accept the Bank Guarantees from Tata Power Renewable Energy Limited due to the four-day delay.
The central issue revolved around the GNA Regulations not permitting CTUIL to accept Bank Guarantees submitted beyond the 30-day window following the grant of in-principle approval. In response, the Commission, after considering the submissions of both the petitioner and CTUIL, decided to relax the timeline outlined in Regulation 8.2 (c) of the GNA Regulations.
The Commission agreed to allow CTUIL to accept and act upon the Bank Guarantees submitted by Tata Power Renewable Energy Limited, despite the four-day delay. However, it was emphasized that this decision should not set a precedent for future cases. In recognition of potential challenges faced by other generators, the Commission decided to extend the relaxation of the timeline to 10 days beyond the specified period in the GNA Regulations. This temporary measure would apply to cases with a due date up to January 20, 2024. The Commission disposed of the petition in favor of Tata Power Renewable Energy Limited, providing a pragmatic solution to address delays in the submission of Bank Guarantees, while also emphasizing that this decision should be viewed as a one-time measure and not establish a precedent for future cases.
Please view the document below for more details.
