+
MERC Leaves Extension Decision on 730 MW Solar Project to Parties
POWER & RENEWABLE ENERGY

MERC Leaves Extension Decision on 730 MW Solar Project to Parties

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.

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.

Related Stories

Gold Stories

Next Story
Infrastructure Energy

KPIL announces new business wins worth Rs 22.25 bn

Kalpataru Projects International (KPIL) has secured new orders and a letter of comfort worth approximately Rs 20.31 billion in its power transmission and distribution (T&D) business across India and international markets. Additionally, its Swedish subsidiary, Linjemontage i Grästorp AB, has received an order worth approximately Rs 1.94 billion (SEK 200 million), taking the combined order value to Rs 22.25 billion.Commenting on the order wins, Manish Mohnot, Managing Director and CEO, KPIL, said the new orders reflect customer confidence in the company's execution capabilities and technical ex..

Next Story
Infrastructure Transport

Tiruchi Airport Handles over 20 t of Domestic Cargo in a Month

Tiruchi International Airport has handled more than 20 t of inbound and outbound domestic cargo since the facility was launched in late August. Outbound shipments have exceeded inbound volumes, with private carriers transporting goods to Chennai, Delhi, Bengaluru and Mumbai. The domestic cargo service began after the Bureau of Civil Aviation Security (BCAS), an independent department under the Ministry of Civil Aviation, granted clearance. The facility was introduced to give local businesses a faster route for sending goods to major domestic hubs, reducing their reliance on cargo routed throug..

Next Story
Infrastructure Urban

Gabriel India Forms Joint Venture with Forvia for Advanced Seating

Gabriel India, part of the US$2.6 bn Anand Group, has formed a joint venture with France-based Forvia to bring advanced seating systems and technologies to the Indian automotive market. The partnership expands Gabriel India’s participation in vehicle systems as automotive architectures become more sophisticated and customer requirements evolve. The joint venture, named Faurecia Anand Seating India, combines Forvia’s global seating technology expertise with Gabriel India’s manufacturing capabilities, customer relationships and understanding of the Indian automotive market. Forvia will hol..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code