The Central Electricity Regulatory Commission (CERC) has introduced a graded compensation framework for delays in meeting renewable project connectivity milestones, aiming to free scarce transmission capacity and encourage timely implementation. The procedure allows eligible developers to seek additional time subject to payment of charges and specified eligibility conditions rather than automatic extensions. The Commission indicated the mechanism is optional and intended to balance flexibility for projects showing progress with measures to prevent indefinite reservation of connectivity. For requests to submit land documentation an applicant must have land documents covering at least 20 per cent of the land required for the connectivity capacity and submit these at least 15 working days before the original compliance deadline. The same 20 per cent threshold applies to applications for extension for financial closure. For extensions to achieve the commercial operation date (CoD) entities following the land or land-BG route must demonstrate documents for at least 75 per cent of required land while those under the LOA/PPA route must demonstrate 50 per cent. The Central Transmission Utility of India (CTUIL) will scrutinise submitted documents and applicants will be allowed to rectify deficiencies within prescribed timelines. Developers must also provide details of contracts for major equipment and civil and electrical works. Failure to meet timelines or to pay applicable charges will result in closure of the application for additional time and connectivity will be dealt with under the existing GNA provisions. Compensation is structured through milestone extension charges (MEC). For land and financial closure milestones the base charge has been fixed at Rs 1,000 per megawatt (MW) per day while the base charge for additional time to achieve CoD is Rs 3,000 per MW per day. For land compliance the Rs 1,000 per MW per day rate applies during the first month, rises by 10 per cent to Rs 1,100 in the second month and to Rs 1,200 in the third month, with a maximum additional period of three months. For financial closure the Rs 1,000 per MW per day rate applies for the first three months, rising to Rs 1,100 in the fourth month, Rs 1,200 in the fifth month and Rs 1,300 in the sixth month, with a maximum extension of six months. Delays in achieving CoD attract steeper charges: Rs 3,000 per MW per day for the first six months, increases of 10 per cent each month in months seven to nine reaching Rs 3,900 in the ninth month, and Rs 6,000 per MW per day in months 10 to 12, with a maximum extension of 12 months. MEC are payable in advance, generally 15 days before the period, and failure to pay can lead to revocation of connectivity while early completion can trigger a refund of unused charges without interest. The Commission rejected calls for exemptions where delays arose from factors beyond developer control, reiterated that the mechanism will not override power purchase agreements or dilute liquidated damages provisions, and said the procedure applies to all eligible entities from the date of the order after consultation with 42 stakeholders and a public hearing on 19 May 2026.