CERC Proposed Compensation Mechanism for Extension of Project Milestones under GNA Regulations

Apr 24, 2026 | by TeamLease RegTech Legal Research Team

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Industry Specific ComplianceThe Central Electricity Regulatory Commission (CERC), on April 15, 2026, issued a proposal to introduce a procedure for levying compensation charges for granting additional time to achieve project milestones under the Connectivity and General Network Access (GNA) Regulations, 2022, aiming to bring uniformity in handling such cases. 

The proposal arises due to multiple requests from project developers seeking extension of timelines for key milestones such as land acquisition, financial closure, and commercial operation date (CoD), failing which connectivity is liable to be revoked. CERC noted the need for a structured and graded compensation mechanism to allow extensions while ensuring efficient utilization of scarce transmission connectivity resources.

Further, the Commission proposed allowing a minimum of two months from the GNA effective date for completing trial runs and pre-commissioning activities without additional charges, after which milestone extension charges would apply. Stakeholder comments have been invited by April 30, 2026, and a public hearing will be conducted before finalizing the procedure.

[Notification No. Petition No. 5/SM/2026]


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