MNRE directs the release of PBGs within 45 days after project completion

05 Sep 2019 CW Staff

Reportedly, the Ministry of New and Renewable Energy (MNRE) has instructed NTPC and Solar Energy Corporation of India (SECI) to release performance bank guarantees (PBGs) for all the commissioned wind and solar power projects. The PBGs can be released in the span of 45 days from the commercial operation date (COD), on the condition that all required submission of necessary documents is fulfilled.

Additionally, MNRE has also stated that under any circumstance developers find delay in the release of the PBGs, they should inform the ministry as well as the managing director of the respective procurer.

When wind or solar power developers successfully bid for certain projects, they are issued a letter of intent. Following 30 days from the time of its issuance, they must deposit a PBG, which is an irrevocable unconditional ban guarantee, to the SECI or NTPC.

In most situations, the PBG is released as soon as a renewable energy project is successfully commissioned, after considering issued related to liquidated damages or penalties arising from delay in commissioning in accordance to the provisions mentioned in a power purchase agreement.

As reported, however, most developers are troubled with issues relating to the timely release of bank guarantees. This is a worrying factor since any delay in the release of PBGs can lead to financial losses for these developers due to blockage of funds.

In one such case, the Central Electricity Regulatory Commission (CERC) ruled in the favor of three separate power producers against NTPC and declared that the retention of PBGs by the power corporation was illegal and arbitrary.

Infrastructure Energy

17 Dec 2025

Vedanta Aluminium Uses 1.57 bn Units of Green Energy in FY25

Vedanta Aluminium, India’s largest aluminium producer, recently reported consumption of 1.57 billion units of renewable energy in FY25, marking a significant milestone in its 2030 decarbonisation roadmap. The company also achieved an 8.96 per cent reduction in greenhouse gas (GHG) emissions intensity compared to FY21, reinforcing its leadership in India’s low-carbon manufacturing transition. During FY25, Vedanta Aluminium expanded its renewable energy portfolio through long-term power purchase agreements, strengthening its strategy to source nearly 1,500 MW of renewable power over the lon..

Oberoi Group to Develop Luxury Resort at Makaibari Tea Estate

EIH Limited, the flagship company of The Oberoi Group, has announced the signing of a management agreement to develop an Oberoi luxury resort at the iconic Makaibari Tea Estate in Darjeeling. The project marks a key milestone in the Group’s long-term strategy of creating distinctive hospitality experiences in rare and environmentally significant locations. Established in 1859, Makaibari is one of the world’s oldest tea estates and is globally recognised for its Himalayan landscape, primary forests and exceptional biodiversity. Spread across 1,236 acres, the estate houses one of the world�..

GHV Infra Secures Rs 1.09 Bn EPC Order in Jamshedpur

GHV Infra Projects Ltd, a fast-growing EPC company in India’s infrastructure and construction sector, has recently secured a Rs 1.09 billion work order in Jamshedpur, Jharkhand. Awarded by a reputed group entity, the contract covers end-to-end civil construction, mechanical, electrical and plumbing (MEP) systems, along with high-quality finishing works for a large building development. The project will be executed over a 30-month period, with defined benchmarks for quality, safety and timely delivery. The order strengthens GHV Infra’s footprint in Jamshedpur, a key industrial hub known fo..