Ministry of Power eliminates penalties for RE power delays

08 Feb 2024 CW Team

The updated guidelines eliminate the provision concerning punitive measures for delays in initiating power supply. Previously, if the power supply commencement exceeded the scheduled commercial operation date (SCOD) by up to six months, the generator faced penalties, including the encashment of the performance bank guarantee or alternative instruments on a per-day basis proportional to the contracted capacity not delivering power.

For delays surpassing six months from the SCOD, the contracted capacity was reduced to the project capacity that had initiated power supply within the SCOD plus six months. Consequently, the power purchase agreement (PPA) for the remaining contracted capacity, which had not commenced power supply, was terminated.

Under the prior guidelines, generators risked being debarred from participating in bids by any procurer or intermediary procurer for one year after the first default and for not less than two years and not more than three years for the second and subsequent defaults.

Typically, developers or power generators were expected to initiate power supply within 24 months from the PPA execution date for allocations not exceeding 1 GW and within 30 months for allocations exceeding 1 GW. However, the procurer now has the flexibility to adjust the SCOD period if needed.

Mercom Research suggests that this relaxation might result in delays in project installation and commissioning. In the previous year, the Ministry of New and Renewable Energy instructed public sector undertakings to blacklist renewable energy developers failing to complete projects within deadlines, with potential blacklisting spanning 3-5 years. During the second quarter of 2023, solar project delays and postponements led to a 46% decline in investments.

The Ministry of Power (MoP) has made revisions to the guidelines governing the tariff-based competitive bidding process for procuring firm and dispatchable renewable power from grid-connected solar, wind, wind-solar hybrid, and renewable energy projects with energy storage. The updated guidelines eliminate the provision concerning punitive measures for delays in initiating power supply. Previously, if the power supply commencement exceeded the scheduled commercial operation date (SCOD) by up to six months, the generator faced penalties, including the encashment of the performance bank guarantee or alternative instruments on a per-day basis proportional to the contracted capacity not delivering power. For delays surpassing six months from the SCOD, the contracted capacity was reduced to the project capacity that had initiated power supply within the SCOD plus six months. Consequently, the power purchase agreement (PPA) for the remaining contracted capacity, which had not commenced power supply, was terminated. Under the prior guidelines, generators risked being debarred from participating in bids by any procurer or intermediary procurer for one year after the first default and for not less than two years and not more than three years for the second and subsequent defaults. Typically, developers or power generators were expected to initiate power supply within 24 months from the PPA execution date for allocations not exceeding 1 GW and within 30 months for allocations exceeding 1 GW. However, the procurer now has the flexibility to adjust the SCOD period if needed. Mercom Research suggests that this relaxation might result in delays in project installation and commissioning. In the previous year, the Ministry of New and Renewable Energy instructed public sector undertakings to blacklist renewable energy developers failing to complete projects within deadlines, with potential blacklisting spanning 3-5 years. During the second quarter of 2023, solar project delays and postponements led to a 46% decline in investments.

Infrastructure Urban

06 Jul 2026

ABS Marine Sees CRISIL Credit Rating Upgrade

ABS Marine Services has secured an upgrade to its long term and short term credit ratings from CRISIL, reflecting improved profitability and revenue growth through long term contracts. CRISIL moved the long term rating from BBB+/Stable to A-/Stable and revised the short term rating from A2 to A2+. The action signals strengthened financial metrics and operational resilience. The company benefited from durable client relationships with firms such as ONGC and Schlumberger. The rating decision followed stronger cash flows and an enlarged bank loan facility, which increased from Rs 3,705 million (m..

Infrastructure Transport

06 Jul 2026

Project BRAHMANK Marks 16 Years Of Strategic Roads In Arunachal

Project BRAHMANK is marking 16 years of work to establish strategic road and bridge links across Arunachal Pradesh, maintaining and developing 811 kilometres of roads and nearly 86 bridges that range from small culverts to large steel and arch bridges. These transport links are described as critical for ensuring year-round movement of defence personnel, equipment and essential supplies while improving everyday travel for people in remote villages. The project balances national security requirements with regional development by focusing on reliable access in challenging terrain. Notable enginee..

Infrastructure Transport

06 Jul 2026

Longleng CSOs Give One Week Ultimatum Over Two-Lane Highway

Civil society organisations (CSOs) in Longleng district have demanded immediate restoration of the deteriorating Changtongya–Longleng two-lane road and sought a detailed status report on the stalled construction within one week. The demand followed a consultative meeting convened under the Phom Peoples' Council (PPC) to discuss welfare and development concerns. PPC president YB Angam Phom said prolonged non-maintenance had caused hardship to commuters and affected transportation, local commerce and the district's development. The meeting urged authorities to undertake immediate restoration a..