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CERC Allows Sael Industries' Subsidiaries to Meet Financial Closure Requirements

The Central Electricity Regulatory Commission (CERC) has ruled in favor of Sael Industries Limited, allowing its subsidiaries to meet the financial closure requirements for their solar projects in Andhra Pradesh. The decision, issued in Petition No. 147/MP/2025, provides regulatory relief by relaxing certain provisions under the General Network Access (GNA) Regulations, 2022.

Background

Sael Industries Limited, along with its subsidiaries Sael Solar MHP1 Private Limited and Sael Solar MHP2 Private Limited, had been granted connectivity for a 2x300 MW solar project at Kurnool-III Pooling Sub-station. However, while the subsidiaries achieved financial closure, the parent company faced regulatory challenges as the GNA Regulations mandated the grantee itself to complete financial closure.

The petitioners argued that the subsidiaries were specifically incorporated to implement the projects and had met the financial closure requirements. They sought the Commission’s approval to validate the financial closures achieved by the subsidiaries as compliance on behalf of the parent company.

Commission’s Ruling

The CERC acknowledged the financial closures completed by the subsidiaries and exercised its powers under Regulations 41 and 42 to relax the provisions of Regulation 11A (2) of the GNA Regulations. The Commission directed the Central Transmission Utility of India Limited (CTUIL) to accept the financial closure documents submitted by the subsidiaries.

Furthermore, the Commission cited a similar decision in Petition No. 503/MP/2024, emphasizing the importance of supporting renewable energy developers by recognizing financial closures completed by subsidiaries.

Key Directives

• CTUIL must expeditiously process the financial closure documents submitted by the subsidiaries.
• The relaxation granted by CERC ensures that Sael Industries retains its connectivity rights without the risk of revocation or financial penalties.
• The ruling is expected to set a precedent for similar cases in the renewable energy sector.

With this ruling, the CERC has facilitated smoother compliance for renewable energy developers, promoting the timely commissioning of clean energy projects. This decision is seen as a significant regulatory support for accelerating India’s transition to renewable energy.