Mumbai, Oct. 13 -- The Maharashtra Electricity Regulatory Commission (MERC) has disposed of a petition concerning Carbon Minus Energy's 730 MW grid-connected solar project, leaving the decision on extending its Scheduled Commencement of Supply Date (SCSD) and Financial Closure timeline to the developer and Maharashtra State Electricity Distribution Company (MSEDCL).

The project was awarded under Maharashtra's scheme for solarisation of lift irrigation systems after MSEDCL's competitive bidding process. MSEDCL had initially invited bids for 800 MW of projects on spare Water Resource Department land, with Carbon Minus Energy later selected for 730 MW. Its Letter of Award was issued on October 7, 2024, while power purchase agreements (PPAs) covering 505 MW and 225 MW were signed in April 2025.

Carbonminus Maharashtra One (CMOPL), the special purpose vehicle established for the project, sought extensions after delays in receiving registered land and grid connectivity. It said these conditions were necessary for achieving Financial Closure and meeting the SCSD. CMOPL also reported in-principle approval from Power Finance Corporation, although final closure remained pending because the land lease deed had not been executed and connectivity was unavailable.

MSEDCL disputed the developer's position, maintaining that bidders could arrange alternative land at their own cost and that CMOPL had missed the contractual Financial Closure deadline. The utility also alleged that a Performance Bank Guarantee submitted by the parent company was invalid. A complaint was filed with the Economic Offences Wing in Mumbai, after which CMOPL submitted electronic guarantees of Rs. 252.5 mn and Rs. 112.5 mn.

The land issue subsequently eased. In April 2026, MSEDCL allowed CMOPL to use private land for 660 MW, and the developer submitted procurement documents relating to the Alephata substation. At a July hearing, MSEDCL raised no objection to extensions, while CMOPL said procurement was nearly complete and Financial Closure would follow shortly. MERC held that the consensus removed the dispute requiring adjudication.

The Commission clarified that the PPA permits MSEDCL to extend the SCSD by up to two months, subject to documentary evidence. Any longer extension must be handled through the contractual mechanism for amending the PPAs. MERC noted the tariff of Rs. 0.88/kWh but said this did not give it jurisdiction to change the timeline without an active dispute. The parties may return to the Commission if a new disagreement arises.

Published by HT Digital Content Services with permission from Construction World.