+
Govt May Extend Deadline for Mega Power Projects to Sign PPAs
POWER & RENEWABLE ENERGY

Govt May Extend Deadline for Mega Power Projects to Sign PPAs

The Indian government is considering extending the timeline for power projects under the Mega Power Policy by two to three years to allow additional time for signing power purchase agreements (PPAs). The proposed extension aims to assist projects that have not yet secured or only partially secured long-term agreements with distribution companies.

At least six projects with a combined capacity of eight gigawatts could benefit. Of this, nearly four gigawatts remain untied, placing Rs 40 billion worth of bank guarantees at risk. Granting more time would allow developers to finalise PPAs and recover these guarantees.

The Mega Power Policy, introduced in 2009, offers benefits such as customs and excise duty exemptions. To qualify, developers must sign long-term PPAs — a requirement made difficult by limited procurement tenders from states.

A similar extension was granted in 2022, increasing the certification deadline from ten to thirteen years for ten provisional projects. The new proposal follows this precedent, aiming to support project viability amid changing market conditions.

By easing financial pressure, the extension could improve developer confidence and help advance India’s energy goals through timely project execution.

Source:EQ Magazine


The Indian government is considering extending the timeline for power projects under the Mega Power Policy by two to three years to allow additional time for signing power purchase agreements (PPAs). The proposed extension aims to assist projects that have not yet secured or only partially secured long-term agreements with distribution companies.At least six projects with a combined capacity of eight gigawatts could benefit. Of this, nearly four gigawatts remain untied, placing Rs 40 billion worth of bank guarantees at risk. Granting more time would allow developers to finalise PPAs and recover these guarantees.The Mega Power Policy, introduced in 2009, offers benefits such as customs and excise duty exemptions. To qualify, developers must sign long-term PPAs — a requirement made difficult by limited procurement tenders from states.A similar extension was granted in 2022, increasing the certification deadline from ten to thirteen years for ten provisional projects. The new proposal follows this precedent, aiming to support project viability amid changing market conditions.By easing financial pressure, the extension could improve developer confidence and help advance India’s energy goals through timely project execution.Source:EQ Magazine

Next Story
Real Estate

No glass boxes!

India is moving away from the ‘glass box’ syndrome, all-glass façades that were widely used in commercial buildings in the last two decades but came at a significant environmental cost given the country’s predominantly hot and humid climate. Poor thermal performance, excessive heat gain and dependency on mechanical cooling systems made buildings with glass façades energy guzzlers and significantly increased their carbon footprint.That said, it’s important to be aware that “glass is not the enemy,” points out Heena Bhargava, Architect, Architecture Discipline. “How it ..

Next Story
Infrastructure Transport

Why do pavements fail?

India’s highways continue to expand at a healthy pace. But conversations on the surface quality of highways are growing louder because major deficiencies and black spots continue to be identified, and they are cause for concern.“Road surface roughness causes vehicle vibrations that, in turn, can affect the performance of drivers,” explains Dr V K Gahlot, Road Safety Auditor, Centre for Research and Sustainable Development (CfRSD). “Continuous exposure may induce fatigue, a contributory factor to road accidents. Road surface roughness also affects the vehicle operating cost...

Next Story
Infrastructure Urban

APAC Logistics Rents Fall for First Time Since 2020

Logistics rents across the Asia-Pacific region declined 0.4% year-on-year in H1 2025, marking the first annual drop since 2020, according to Knight Frank’s Logistics Highlights H1 2025 report. Despite global trade tensions and cautious occupier sentiment, India emerged as a standout performer, driven by robust manufacturing momentum and supply chain recalibration.Regional Trends and DivergenceWhile rents largely remained stable across most markets, regional differences became more pronounced:Mainland China continued to see rental declines, though the pace of decline moderated to 12.8% YoY, s..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?