CERC Approves The Procedure For Levy Of Milestone Extension Charges Under The General Network Access Regulations, 2022

The Central Electricity Regulatory Commission (“CERC”), by its order dated 14.08.2026 in Petition No. 5/SM/2026¹, has approved the procedure for levy of compensation charges permitting connectivity grantees additional time to achieve the milestones prescribed under the CERC (Connectivity and General Network Access to the inter-State Transmission System) Regulations, 2022 (“GNA Regulations”). The order follows the draft procedure issued on 15.04.2026 and the consultation process thereon, and has been passed in exercise of the powers of relaxation under Regulations 41 and 42 of the GNA Regulations.

Under the extant framework, an entity granted connectivity is required to achieve prescribed milestones relating to submission of land documents, achievement of financial closure and declaration of the commercial operation date (“COD”), failing which Regulations 11B and 24.6 of the GNA Regulations attract revocation of connectivity and encashment of connectivity bank guarantees.

The approved procedure substitutes automatic revocation with a structured, compensation-based mechanism, whereby an entity holding an in-principle or final grant of connectivity may, subject to the specified eligibility conditions, seek additional time against payment of Milestone Extension Charges (“MEC”) on a graded scale differentiated by milestone and by the duration of the extension sought. MEC is payable in advance and failure to pay or to adhere to the revised timelines attracts revocation of connectivity and encashment of the connectivity bank guarantees, and the amounts collected are to be credited to the Deviation and Ancillary Services Pool Account. The firm start date of connectivity remains unaffected.

Footnote

1. Petition No. 5/SM/2026.

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