Inox Green Loses 300 MW Grid Access After Delays in Gujarat Project
Inox Green Energy Services has entered a challenging phase after losing grid connectivity for its 300 MW wind project in Gujarat. The decision, upheld by the Central Electricity Regulatory Commission (CERC), comes after Inox failed to meet financial closure requirements or show material progress despite multiple extensions.
The setback affects one of the company’s major projects and also shows the disconnection and wider challenges facing India’s clean energy developers, particularly the difficulty of securing land and approvals on time. It also points to a transmission network that is struggling to keep pace with the rapid addition of new renewable projects, creating delays even for developers that are ready to build.
Why Did CERC Back the Grid Revocation?
The CERC’s order reaffirmed the Central Transmission Utility of India’s (CTUIL) decision to revoke connectivity at the Bhuj-II pooling station on March 10. According to filings, Inox Green had held the grid access allocation for six years, a period in which it was expected to achieve financial closure and begin meaningful work. CTUIL argued that the project had not progressed beyond preliminary stages. The regulator (CERC) agreed, noting that transmission connectivity is a scarce resource in a network already strained by increasing renewable additions.
The decision included encashment of bank guarantees worth ₹3.5 crore, a financial penalty triggered by missed commissioning timelines. Inox Green’s plea for continued connectivity cited land allotment delays, transmission readiness constraints and disruptions caused by the pandemic. However, CERC said the developer had benefited from the extended timeline and had not demonstrated adequate progress to justify further accommodation.
How India’s Transmission Crunch Shaped the Outcome
The revocation comes at a time when India’s transmission infrastructure is under unprecedented pressure. Reuters reported that nearly 17 gigawatts of clean energy projects have lost grid access in recent months. The cancellations reflect a broader shift in regulatory priorities, with authorities seeking to allocate connectivity to developers who are operational or close to completion.
Several renewable companies are expanding aggressively as India aims to double its non-fossil fuel power capacity to 500 gigawatts. This rapid scale-up has intensified competition for grid access, making delays more costly. CERC’s observation that Inox Green had held connectivity for six years captured this imbalance. The commission emphasised that prolonged holding of unused capacity hinders national progress and must be addressed through timely revocations.
The Solar Energy Corporation of India (SECI), which awarded the project tender, has already encashed Inox Green’s performance guarantees. A government-led dispute resolution panel also declined to grant further extensions, signalling broad institutional alignment behind the revocation decision.
What’s Next for Inox Green’s Wind Project?
Inox Green may still pursue the project but will need to apply afresh for connectivity if it wishes to proceed. The company argued that the project suffered from systemic challenges, including delays in land allocation and readiness of transmission corridors. Developers across the sector have flagged similar issues, making Inox Green’s case emblematic of broader structural challenges.
However, regulators appear to be moving away from leniency. CERC noted that the company had “taken undue advantage of the delay in revocation” and must re-enter the process competitively. The outcome illustrates a shift toward performance-linked accountability across renewable infrastructure development.
For now, the loss of connectivity may weigh on project timelines and investor sentiment. Inox Green’s stock, which has delivered strong returns over the past year, traded lower following the news, reflecting market concerns around execution risks.
As of the close on November 17, 2025, Inox Green Energy Services Ltd’s stock settled at ₹250.50, slipping 0.99% from the previous close of ₹253.00.
Over the past year, the stock has delivered a strong performance, rising around 70%, supported by renewed investor interest in the clean-energy services segment. At the latest closing price, Inox Green’s market capitalisation stood at roughly ₹9,355 crore, placing it firmly in the mid-cap renewable energy universe.
Conclusion
Inox Green’s grid revocation marks a significant moment for the company and the renewable sector at large. As India pushes toward ambitious clean energy targets, regulatory frameworks are becoming more stringent, prioritising timely project execution and efficient use of transmission resources.
Developers may need to recalibrate their strategies to align more closely with evolving timelines and infrastructure readiness. For Inox Green, the next steps will determine how quickly it can regain momentum and secure approvals for future growth. Will the company’s renewed efforts be enough to reposition the project and restore investor confidence?
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