From pv magazine India
India Ratings and Research said the MNRE’s move to classify commissioning delays linked to Supreme Court proceedings in the Great Indian Bustard case as a force majeure-like event provides material relief to developers of around 8.6 GW of renewable capacity.
India Ratings and Research said the measure significantly mitigates liquidated-damages exposure tied to commissioning timelines. Residual risks are largely limited to developers meeting Section 68 application deadlines and documentation requirements stipulated under the order.
“While some interest during construction-linked cost increases (estimated at 5%–12%) may still arise, these remain manageable through phased debt drawdowns and do not materially compromise project viability,” said Samant Jha, associate director of infrastructure and project finance at India Ratings and Research.
The agency added that given the credit strength of most sponsors, any cost overruns are likely to be funded through sponsor support.
The relief applies to projects with original scheduled commercial operation dates (SCOD) between March 21, 2024, and Dec. 19, 2025. During this period, developers were unable to secure Section 68 approvals for overhead transmission lines due to Supreme Court directions aimed at protecting GIB habitats and the formation of a larger committee to review the matter.
“Accordingly, out of 8.6 GW, majority capacity is in Gujarat (6.4 GW) and the balance are benefitted from such SCOD extensions,” said Ameer Banu, senior analyst at India Ratings and Research.
The MNRE has directed Solar Energy Corp. of India (SECI), NTPC Ltd., National Hydroelectric Power Corp. and Satluj Jal Vidyut Nigam Ltd. to grant commissioning date extensions equivalent to the period between the later of March 21, 2024, or the Section 68 application date, and Dec. 19, 2025. Developers must furnish proof of application and provide undertakings to comply with Supreme Court-mandated measures.
Projects with SCODs prior to March 21, 2024, or those that failed to apply for Section 68 approval before Dec. 19, 2025, are not eligible. Any overlap with previously granted extensions will not be considered.
Of the 8.6 GW expected to benefit, around 2.8 GW is being developed by private companies and approximately 5.8 GW by government entities and public sector undertakings. Ind-Ra said the extension framework protects projects from liquidated damages under power purchase agreements and supports timely completion.
The MNRE has also requested the Ministry of Power to extend corresponding relief covering grid connectivity, general network access and inter-state transmission system waiver continuity. If approved, these additional measures would further reduce evacuation-related risks during the extended implementation period.
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