🔍 The Background of the Case
Under Section 86(1)(f) of the Electricity Act, 2003, Kundan Solar (previously Astronfield Gujarat Pvt. Ltd.) has petitioned the Gujarat Electricity Regulatory Commission (GERC) for resolution of a disagreement with Gujarat Urja Vikas Nigam Limited (GUVNL). The question is whether the company can make the necessary repairs to generate power at its full installed capacity of 11.5 MW in accordance with its original and revised Power Purchase Agreements (PPA) from April and August 2010.
📄 Petition and Provisional Hearing
On June 26, 2025, GERC held its initial hearing on Kundan Solar’s Interim Application No. 16 of 2025. Despite official reminders, GUVNL did not attend additional sessions and objected, claiming the petitioner’s inadequate arguments.
📑 Information Requests from the Commission.
In order to evaluate the case, GERC asked for extensive documentation, which included:
• NCLT/NCLAT orders and the authorized resolution plan;
• Contour and site-level reports addressing floods and leveling;
• Resolution Professional’s information memorandum;
• Technical specifications of solar modules and inverters.
These were necessary to assess capacity limitations as well as contractual compliance.
The petitioner has four weeks to produce all outstanding papers, and both parties have been invited to submit further written submissions within that time.
💡 The Significance of It
The case brings to light urgent regulatory concerns in the solar industry in India:
• Physical restrictions against PPA enforcement: When infrastructure underperformance restricts generation, disputes frequently occur, particularly following calamities like floods or insolvency transitions.
• Restructuring and compliance: Kundan Solar wants to restart the facility after insolvency resolution, but in order to protect contractual rights, it must provide legal and technical clarification.
• Examination of legacy projects by regulators: Similar disagreements about performance, tariff entitlement, and capacity validation arise in many early-stage solar plants.
✅ The bottom line
In addition to deciding whether Kundan Solar can resume production at full capacity, the GERC’s procedures might establish a standard for the energy industry’s handling of legacy PPAs and declining plant performance.
