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ACME Pokhran Solar Pvt. Ltd. filed an Interlocutory Application before the Gujarat Electricity Regulatory Commission (GERC) in Petition No. 2376 of 2024, seeking interim relief related to a 50 MW wind power project located in Surendranagar district, Gujarat. The project, governed by a Power Purchase Agreement (PPA) signed on 14 December 2022 with Gujarat Urja Vikas Nigam Limited (GUVNL), faced delays due to a series of force majeure events. The Scheduled Commercial Operation Date (SCOD) was originally set for 13 December 2024, and as per the PPA, an additional 180-day grace period allowed project commissioning until 11 June 2025.
The petitioner explained that several factors contributed to the delay. These included approval delays for metering and pooling schemes, land measurement issues, and complications with land usage permissions. In addition, approval for the diversion of forest land and a new requirement for undergrounding of a 33 kV line caused further setbacks. Despite these challenges, ACME managed to commission 26.4 MW by 21 May 2025 and another 6.6 MW on 1 June 2025. The company anticipated commissioning an additional 9.9 MW by 10 June and the final 6.6 MW by 11 June or shortly thereafter.
To prevent potential coercive action under the PPA, such as bank guarantee encashment or termination of the agreement, ACME requested that GUVNL be restrained until the final decision on the main petition is issued. The Commission had already reserved its decision on the main petition filed earlier, which seeks an extension of the SCOD based on force majeure grounds. During the hearing, GUVNL emphasized its right to invoke the terms of the PPA if the full capacity was not commissioned by the deadline, including the right to encash performance guarantees and reduce contracted capacity accordingly.
ACME offered to deposit an advance amount equivalent to the bank guarantee under protest, subject to the Commission’s final decision, within 48 hours, in exchange for protection against bank guarantee encashment. GUVNL accepted this arrangement, provided payment was made on time. The Commission acknowledged that force majeure claims warranted serious consideration and recognized the petitioner’s substantial efforts toward project completion.
Considering the facts, the Commission granted interim relief to the petitioner. It directed GUVNL not to prevent ACME from commissioning the remaining 17 MW and accepted the arrangement of depositing an equivalent amount in lieu of bank guarantee encashment. This interim relief is subject to the final outcome of the main petition. The Commission also instructed both parties to report on the commissioning status of the project.
The next date of the hearing will be announced separately. The Commission emphasized that failure to deposit the equivalent amount would entitle GUVNL to proceed as per the PPA, including bank guarantee encashment.
