GERC Reviews Delays In 700 MW Dholera Solar Projects Amid Land Allocation Issues And PPA Disputes

Representational image. Credit: Canva

The Gujarat Electricity Regulatory Commission (GERC) heard matters related to Petition Nos. 2282 and 2283 of 2023 on June 10, 2025. These petitions concern the adoption of tariffs and the signing of Power Purchase Agreements (PPAs) for solar projects awarded through a competitive bidding process conducted by Gujarat Urja Vikas Nigam Ltd. (GUVNL) under RfS dated March 18, 2020, for a 700 MW solar capacity at the Dholera Solar Park.

Veena Energy Renewable Urja Pvt. Ltd., one of the petitioners, sought the adoption of a tariff of Rs. 2.78 per unit and requested GUVNL to enter into a PPA for a 100 MW project awarded to them via a Letter of Award in October 2020. Alongside, multiple parties are involved in related petitions, including TEQ Green Power Pvt. Ltd., Tata Power Company Ltd., SJVN Ltd., ReNew Solar Power Pvt. Ltd., and Gujarat Power Corporation Ltd. (GPCL).

A key concern raised in the hearings was the non-allocation of land by GPCL, which is essential for the project execution. Several developers have already paid part of the development charges, but due to the absence of clarity on land location and coordinates, they are unable to proceed with their projects. GPCL stated it is in discussions with the Dholera Authority for land allocation but has yet to submit a formal reply clarifying these issues.

Tata Power pointed out that the land-related reply from GPCL lacked necessary details such as exact coordinates and claimed charges. The offer validity has already expired, and any change in land allocation would impact their project cost, which they argue should be treated as a “Change in Law” and be allowed as a pass-through in tariff.

TEQ Green Power Pvt. Ltd. highlighted the burden of liquidated damages they face for not achieving the Scheduled Commercial Operation Date (SCOD), despite the delay being caused by the non-availability of land. They requested an extension of the project deadline and also reserved their right to claim relief under Change in Law provisions.

GUVNL clarified that three types of cases have emerged: one, where the PPA is signed and approved; second, where the project is awarded but the PPA is not signed; and third, where bidders like SJVNL and ReNew Solar were not originally part of the petition but now seek impleadment. The Commission has asked GPCL to submit a clear reply on land allocation and related charges within 10 days and directed all other respondents to file their replies as well. GUVNL must file a consolidated submission detailing actions taken and current project status within one week thereafter.

The Commission will separately notify the next date of hearing. The matter remains ongoing as it was remanded back from APTEL and needs timely resolution.

 

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