GUVNL’s Phase IX Solar Projects Face Delays Due To Land Allotment Issues In Gujarat

Representational image. Credit: Canva

On April 3, 2025, the Gujarat Electricity Regulatory Commission (GERC) heard the petition filed by Gujarat Urja Vikas Nigam Limited (GUVNL), along with related interlocutory applications. The case revolves around a solar project under GUVNL’s Phase IX bidding, in which multiple developers, including TEQ Green Power Pvt. Ltd., Vena Energy Renewables Urja Pvt. Ltd., Tata Power Company Ltd., and others, were awarded capacities.

GUVNL submitted that it had applied on October 10, 2024, seeking to amend its original petition to include two additional respondents—SJVN Ltd. and ReNew Solar Power Pvt. Ltd.—who were not part of the original filing. The commission directed GUVNL to serve copies of the amendment application to all respondents and asked for an affidavit confirming service. Respondents were given two weeks to respond.

A key issue that emerged during the hearing was the delay in land demarcation and allocation by Gujarat Power Corporation Ltd. (GPCL), which is impacting the timely execution of awarded solar power projects. TEQ Green Power Pvt. Ltd., a respondent in the case, informed the commission that despite signing the Power Purchase Agreement (PPA) on March 20, 2024, they have not been allotted the project land in the Special Economic Zone (SEZ), which has led to delays. TEQ submitted that it had already invested heavily in contracts and preparatory works, and urged the commission to direct GPCL to expedite land allotment and submit necessary documents.

Veena Energy and Tata Power, who had earlier indicated that land issues were resolved, revised their stance and raised concerns during the latest hearing. Their counsels argued that GPCL had changed the terms regarding land demarcation and increased the development charge per megawatt from the earlier ₹13.98 lakh, causing confusion and delay. The commission questioned why these companies had previously indicated that the issue was resolved despite no formal communication or documentation from GPCL.

GPCL confirmed that it had submitted its response, which included clarifications about the current status of land allocation and demarcation. The commission directed all other respondents to file their replies within two weeks and asked GUVNL to file a rejoinder within one week after receiving the responses.

The commission emphasized the duty of GPCL to allocate land on time to avoid project delays and potential penalties for developers. It also noted that the sudden change in charges and lack of formal land demarcation documents could negatively affect project timelines and coordination among developers.

The commission acknowledged the seriousness of delays due to land issues and scheduled further proceedings, the date of which will be announced later. All parties were instructed to complete the exchange of documents and responses in the given timeframe to avoid any further hold-up in the matter.

 

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