Mumbai, Oct. 27 -- The Gujarat Electricity Regulatory Commission (GERC) has reserved orders on two interlocutory applications filed by HR Sabarmati against Gujarat Urja Vikas Nigam (GUVNL) and Gujarat Energy Transmission Corporation (GETCO) over delays to a 280 MW solar project in Chharodi, Ahmedabad. The developer has sought protection from bank guarantee encashment and permission to add further force majeure grounds to its original petition.
HR Sabarmati signed a power purchase agreement with GUVNL on April 5, 2024, to supply 280 MW of solar power. The scheduled commencement of supply date was April 4, 2026. The developer attributed the delay to circumstances beyond its control and requested interim protection against contract termination, blacklisting and other coercive action while its extension petition remains pending.
Under Interim Application No. 79 of 2026, the company sought protection from the proposed encashment of performance bank guarantees worth Rs. 649.6 mn by GUVNL and connectivity bank guarantees worth Rs. 280 mn by GETCO. It cited nine force majeure events, including delays in land acquisition, right-of-way clearances and statutory approvals under Sections 68 and 164 of the Electricity Act, 2003. Unseasonal rainfall and flooding in Patan, Junagadh and Kheda during 2024 and 2025 were also cited.
The other grounds included security restrictions and labour migration during Operation Sindoor, uncertainty caused by changes to Gujarat's stamp duty framework, alterations to district and taluka boundaries, and difficulties securing transmission connectivity. The developer also pointed to delays in finalising feeder bay locations and drawings at GETCO's Bhesan substation, as well as supply chain disruption, raw material shortages and fuel price volatility linked to the West Asia conflict.
Through Interim Application No. 80 of 2026, HR Sabarmati sought to add the West Asia conflict as a force majeure event, referring to advisories from the Ministry of Finance and the Ministry of New and Renewable Energy. At the October 6 hearing, it said more than Rs. 5.93 bn had been invested and 35 MW had become operational. GUVNL and GETCO opposed relief, stating that bank guarantees were independent contractual obligations. Following Gujarat High Court directions, the GERC bench maintained the interim status quo and directed written submissions by October 13.
Published by HT Digital Content Services with permission from Construction World.