The Central Electricity Regulatory Commission (CERC) has given relief to Pace Digitek Limited by accepting a two-day delay in submitting its Connectivity Bank Guarantees (Conn-BGs). The Commission has also directed the Central Transmission Utility of India Limited (CTUIL) to accept the guarantees and restore connectivity for the company’s proposed 100 MW solar power project with a 50 MW Battery Energy Storage System (BESS) at the NP Kunta Pooling Station in Andhra Pradesh.
The Commission used its authority under Regulations 41 and 42 of the GNA Regulations, 2022 in its dated order, concluding that the delay was unintentional and that the developer would suffer disproportionately if relief were denied.
The dispute arose after Pace Digitek failed to submit the required Conn-BG1 and Conn-BG3 within the stipulated 30-day period following the grant of in-principle connectivity by CTUIL on March 27, 2026. The guarantees were eventually submitted on April 29, 2026, resulting in a delay of two days. CTUIL subsequently treated the company as a defaulter and later closed the connectivity application in accordance with Regulation 8.2(c) of the GNA Regulations.
Pace Digitek argued that the delay occurred due to changes required in the tenure and format of the bank guarantees. The company submitted that the original guarantees sanctioned by Canara Bank had a tenor of two years and six months, whereas CTUIL required a tenure of three years plus a one-year claim period, necessitating fresh approvals and additional processing time from the bank.
The company further contended that revocation of connectivity would jeopardize substantial investments already made in the project and adversely impact implementation timelines under its power purchase agreement with Solar Energy Corporation of India (SECI). Pace Digitek informed the Commission that it had already committed approximately ₹557.62 crore, including EPC contracts, toward the development and commissioning of the project.
CERC observed that the facts of the case were similar to its earlier order in the matter of Tata Power Renewable Energy Limited, wherein a four-day delay in submitting connectivity bank guarantees had been condoned. The Commission noted that the delay in the present case was unintentional and not wilful. The regulator further noted that revoking connectivity at this stage could adversely affect project implementation, particularly since the project is tied to a SECI power purchase agreement with a scheduled commercial operation date in September 2026.
As a result, CERC eased Regulation 8.2(c) and instructed CTUIL to handle Pace Digitek’s bank guarantees. Additionally, CTUIL’s May 19, 2026, communication that closed the company’s connectivity application was set aside by the Commission. It did not, however, object to CTUIL’s previous message classifying the company as a defaulter, citing it as a true statement in accordance with the regulations.
In addition to giving Pace Digitek relief, the order demonstrates readiness of CERC to take a practical stance in situations where minor procedural errors could otherwise cause major renewable energy projects with substantial financial outlays and stringent implementation deadlines to fail.
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