The Central Electricity Regulatory Commission (CERC) has granted a six-week extension to Azure Power Sixty-Three Private Limited (AP63PL) for submitting the required land documents for its 300 MW solar power project in Gujarat. The order, issued on July 2, 2026, provides temporary relief to the company and prevents the immediate cancellation of its grid connectivity. The decision was passed by a CERC bench headed by Chairperson Jishnu Barua.
The matter came before the Commission after Azure Power India Private Limited and its subsidiary, AP63PL, requested additional time to meet the land requirement under Regulation 11A(1) of the General Network Access (GNA) Regulations. According to the rules, the developer had to show possession of at least 50% of the required land for the project by July 2, 2026. For the planned 300 MW solar project, this meant securing around 450 acres of land.
If the company had failed to meet the deadline without receiving an extension, the Central Transmission Utility of India Limited (CTUIL) could have cancelled the project’s connectivity approval. It also had the authority to encash bank guarantees worth about ₹39.5 crore, including a ₹30 crore Land Bank Guarantee and ₹9.5 crore in Connectivity Bank Guarantees.
Azure Power informed the Commission that administrative changes in Gujarat had delayed the land acquisition process. In late 2025, the state government reorganized the Banaskantha district and created the new Vav-Tharad district, where the project’s Raghanesda Pooling Station is located. The restructuring led to changes in local revenue offices and administrative jurisdictions, slowing land registration and mutation procedures.
Despite these delays, the company said it had continued work on the project. It informed the Commission that it had invested nearly ₹50 crore in site development and project mobilization. By the time of the final hearing, the developer had secured around 307 acres of land, which represents nearly 34% of the total land required for the project.
Azure Power also pointed out that CERC had proposed a Milestone Extension Charges (MEC) framework to deal with delays through financial penalties instead of immediate cancellation of connectivity. However, the company argued that the framework was still at the draft stage and would not apply before its compliance deadline. It further stated that the associated interstate transmission infrastructure at the Raghanesda Pooling Station is still under construction and is expected to become operational only by the end of 2027. Therefore, granting a short extension would not affect grid operations or other stakeholders.
After reviewing the case, CERC observed that the developer had made substantial progress and that the delay was mainly due to administrative reasons beyond its control. Using its powers to relax regulatory provisions in appropriate cases, the Commission extended the deadline for submitting the required land documents until August 31, 2026.
However, the relief was granted with a condition. Azure Power must pay a compensation amount equal to 5% of its Land Bank Guarantee to CTUIL within 15 days of the order. If the payment is not made within the specified period, CTUIL will be free to take action under the existing GNA Regulations. The Commission also directed that the compensation collected will be used to reduce monthly transmission charges, benefiting the overall power transmission system.
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