CESC Review Petition Rejected By CERC For 300 MW Hybrid Project

The Central Electricity Regulatory Commission (CERC) has dismissed a review petition filed by CESC Ltd., challenging the regulator’s July 9 order that rejected tariff adoption for a 300 MW wind-solar hybrid power procurement.

In its petition (No. 13/RP/2025), CESC sought reconsideration of the earlier ruling, arguing that the tariff of ₹3.81/kWh was discovered through a competitive bidding process aligned with Ministry of Power guidelines. The utility claimed it had secured deviation approval from the West Bengal government prior to bidding, allowing bidders to offer up to 100% of capacity—contrary to the standard cap of 50% for the lowest bidder.

CERC, however, maintained that the project’s inter-state nature required deviation approval from the central government, not the state. The commission cited its own proceedings from November 2024, where it had questioned CESC’s reliance on state-level sanction for a similar solar procurement. Despite that, CESC proceeded with fresh bidding days later, again using West Bengal’s approval.

“The petitioner was well aware on Nov. 5, 2024, of the jurisdictional error,” the commission stated, adding that the approval obtained was “non est” and lacked legal standing.

CESC argued that the guidelines did not clearly define “appropriate government” and that it acted in good faith. It also pointed to past cases where post-facto approvals were accepted. The utility has since approached the Ministry of New and Renewable Energy for retrospective clearance.

The commission also rejected CESC’s justification for the tariff, stating that the supporting documents lacked analytical rigor and relied on speculative assumptions. It noted concerns over transparency, as the winning bidder was a subsidiary of CESC and the bidder pool was limited.

While CERC agreed to expunge the phrase “wholly owned subsidiary” from its earlier order, it declined to remove other observations that questioned the integrity of the bidding process.

The petition’s dismissal means CESC must reinitiate the bidding process in full compliance with central guidelines. The commission emphasized that regulatory exceptions cannot become precedent.

The full order can be viewed here.