The Central Electricity Regulatory Commission has ruled in favor of VEH Jayin Renewables Private Limited, allowing the company to restore connectivity approval for its hybrid renewable energy project in Madhya Pradesh. The decision, issued on May 7, 2026, resolves a dispute related to the delayed submission of mandatory financial guarantees and enables the project to move ahead toward commissioning.
The matter arose after regulatory amendments introduced in September 2025 imposed additional compliance requirements on existing renewable energy projects. VJRPL was already developing a 151.8 MW wind power project connected to the Rajgarh substation in Madhya Pradesh and had also secured approval to integrate an additional 45 MW solar power component, converting the project into a hybrid renewable energy installation with a total capacity of 196.8 MW.
Under the revised regulations, developers were directed to submit two mandatory Connectivity Bank Guarantees, identified as Conn-BG1 and Conn-BG3, by November 8, 2025. The total value of these guarantees was approximately ₹1.4 crore. However, VJRPL failed to meet the prescribed deadline and submitted the guarantees on December 8, 2025, exactly one month after the due date.
The company explained before the Commission that the delay occurred due to internal administrative procedures and approval requirements involving its Australia-based investors. VJRPL stated that the delay was procedural in nature and not an indication that the company intended to abandon or delay the project.
Despite the company’s request for additional time, Central Transmission Utility of India Limited rejected the late submission and revoked the connectivity approval for the 45 MW solar component in March 2026. CTUIL maintained that the timelines mentioned in the regulations were mandatory and needed to be followed strictly to maintain discipline and transparency in the connectivity approval process.
VJRPL subsequently approached the CERC seeking restoration of the connectivity approval. During the hearing, the company argued that the project had already reached an advanced stage of commissioning and that cancellation of the approval would create significant financial and operational difficulties. The developer also informed the Commission that all other statutory permissions and project-related clearances were already in place.
After reviewing the submissions and circumstances of the case, the Commission observed that the delay was unintentional and inadvertent. The CERC noted that the company had eventually complied with the financial guarantee requirements and invoked its “Power to Relax” provisions to prevent undue hardship to the developer.
However, the Commission also imposed a financial penalty on the company for the delayed compliance. VJRPL has been directed to pay ₹7 lakh, which is equal to 5% of the required bank guarantee amount, within 30 days. Following the payment, CTUIL has been instructed to restore the connectivity approval within one week and process the required technical data so that the hybrid renewable energy project can proceed toward operations and planned captive renewable power supply.
Subscribe to get the latest posts sent to your email.
