+
CERC Rules Land and Approval Delays Not Grounds to Exit Wind Project
ECONOMY & POLICY

CERC Rules Land and Approval Delays Not Grounds to Exit Wind Project

The Central Electricity Regulatory Commission rejected a petition by Betam Wind Energy Pvt Ltd, an Engie Group company, seeking discharge from obligations under a 200 MW wind power project awarded by the Solar Energy Corporation of India under Tranche-VII bidding. The project was allocated under a 1,200 megawatt (MW) transmission system (ISTS)-connected wind power tender floated in February 2019 and the company secured a 200 MW allocation at a tariff of Rs 2.79 per kWh. The developer furnished a performance bank guarantee of Rs 400 million (mn) and sought refund of Rs 4.72 million (mn) paid as delay charges.

The Commission held that difficulties related to land acquisition, Ministry of Defence clearances, Covid-19 disruptions and delays in regulatory approvals did not permit the developer to walk away from the project. SECI opposed the petition and maintained that land procurement, statutory approvals and project execution risks rested with the developer under the bidding documents. The regulator noted that repeated extensions had been granted for signing the power purchase agreement but the developer declined to execute the agreement in November 2021.

The order observed that the developer had participated after conducting due diligence and was aware of responsibilities associated with land procurement, approvals and implementation, and that issues arising from changes in land policy or contractor problems could not automatically absolve contractual duties. While the Commission acknowledged that the pandemic and regulatory delays created challenges, it concluded those factors did not render execution impossible, citing the extensions and revised commissioning schedules by SECI. The ruling therefore emphasised the allocation of commercial and regulatory risk in renewable bidding programmes.

The matter relates to a power sale agreement under which SECI agreed to supply power to Uttar Pradesh Power Corporation Ltd covering 380 MW of wind capacity including the 200 MW allocation. The Commission's decision is expected to serve as precedent for disputes over project abandonment, force majeure claims and enforcement of bank guarantees in India's renewable energy sector. The outcome reinforces that bidders bear development risks unless contracts expressly provide relief.

The Central Electricity Regulatory Commission rejected a petition by Betam Wind Energy Pvt Ltd, an Engie Group company, seeking discharge from obligations under a 200 MW wind power project awarded by the Solar Energy Corporation of India under Tranche-VII bidding. The project was allocated under a 1,200 megawatt (MW) transmission system (ISTS)-connected wind power tender floated in February 2019 and the company secured a 200 MW allocation at a tariff of Rs 2.79 per kWh. The developer furnished a performance bank guarantee of Rs 400 million (mn) and sought refund of Rs 4.72 million (mn) paid as delay charges. The Commission held that difficulties related to land acquisition, Ministry of Defence clearances, Covid-19 disruptions and delays in regulatory approvals did not permit the developer to walk away from the project. SECI opposed the petition and maintained that land procurement, statutory approvals and project execution risks rested with the developer under the bidding documents. The regulator noted that repeated extensions had been granted for signing the power purchase agreement but the developer declined to execute the agreement in November 2021. The order observed that the developer had participated after conducting due diligence and was aware of responsibilities associated with land procurement, approvals and implementation, and that issues arising from changes in land policy or contractor problems could not automatically absolve contractual duties. While the Commission acknowledged that the pandemic and regulatory delays created challenges, it concluded those factors did not render execution impossible, citing the extensions and revised commissioning schedules by SECI. The ruling therefore emphasised the allocation of commercial and regulatory risk in renewable bidding programmes. The matter relates to a power sale agreement under which SECI agreed to supply power to Uttar Pradesh Power Corporation Ltd covering 380 MW of wind capacity including the 200 MW allocation. The Commission's decision is expected to serve as precedent for disputes over project abandonment, force majeure claims and enforcement of bank guarantees in India's renewable energy sector. The outcome reinforces that bidders bear development risks unless contracts expressly provide relief.

Related Stories

Gold Stories

Next Story
Infrastructure Urban

NABARD Holds Seminar on Vigilance, Integrity and Good Governance

National Bank for Agriculture and Rural Development (NABARD) organised a seminar on “Vigilance: Strengthening Integrity and Good Governance” on 25 August 2026 at its Head Office in Mumbai as part of the ongoing Vigilance Awareness Campaign 2026 being observed from 17 August to 16 November 2026, with the theme “Probity for Prosperity."" The seminar was graced by Suresh N Patel, Former Central Vigilance Commissioner, Government of India, as the chief guest and keynote speaker.  The programme was attended by G S Rawat, Deputy Managing Director, Dr Ajay K Sood, Deputy Managing Dire..

Next Story
Equipment

XCMG Unveils World's First 14,000-Ton Ring Crane for Heavy Lifting

XCMG has announced that the first main unit of the world's first 14,000-ton ring crane has rolled off the production line, marking a historic breakthrough in ultra-heavy lifting technology. Jointly developed by XCMG and Sinopec Heavy Lifting & Transportation Co., Ltd., the crane will be the largest-capacity ring crane ever built, setting a new benchmark for major construction projects worldwide.The crane features a modular configuration comprising two main units that work in tandem. The first main unit has completed final assembly and can independently perform lifting operations. Once both..

Next Story
Infrastructure Urban

Thriveni Logistics orders 200 tip trailers from Jagdamba trailers

Jagdamba Trailers (JTPL), one of India’s growing trailer manufacturers, has secured a significant order for 200 Tip Trailers from Thriveni Transport and Logistics Pvt. Ltd., a leading mining and logistics company serving operations across India and overseas.The order, placed for iron ore transportation, is a major milestone for JTPL, particularly as the company secured the business after competing with more than 10 established trailer manufacturers. It also strengthens an already successful relationship between the two companies. Approximately one and a half years ago, Thriveni Transport and..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

SPECIAL OFFER
QR Code