India Ratings and Research (Ind-Ra) said the Ministry of New and Renewable Energy’s decision to treat commissioning delays arising from the Supreme Court’s ongoing proceedings in the Great Indian Bustard (GIB) matter as a force majeure‑like event provides material relief to developers of approximately 8.6 GW of renewable capacity.
Ind-Ra opines that this move significantly mitigates liquidated‑damages exposure arising from commissioning‑timeline risks, with residual risk largely confined to developers meeting Section 68 application timelines and documentary requirements mandated 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,” says Samant Jha, Associate Director, Infrastructure & Project Finance Group, Ind-Ra. Given the credit strength of the majority of the sponsors, the agency believes that cost overruns, if any, are likely to be funded by the sponsors.
The relief applies to projects with original scheduled commercial operations date (SCOD) falling between March 21, 2024 and Dec. 19, 2025, during which developers were unable to secure Section 68 approvals for overhead transmission lines due to the Supreme Court’s directions on protecting GIB habitats and the subsequent constitution of a larger committee than an earlier three-member committee mandated to decide on 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,” adds Ameer Banu, Senior Analyst, Ind-Ra.
MNRE has directed Solar Energy Corp. of India, NTPC, 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, subject to developers furnishing proof of application and undertakings to comply with the Supreme Court‑mandated measures. Projects with SCODs prior to 21 March 2024, or those that did not apply for Section 68 approval before Dec. 19, 2025, remain outside the ambit of this relief, and any overlaps with earlier extensions will not be considered.
Of the approximately 8.6 GW expected to benefit, about 2.8 GW is being developed by private players and around 5.8 GW by government entities and PSUs. The extension framework protects projects from liquidated damages under power purchase agreements and supports timely completion, with the MNRE also requesting the Ministry of Power to extend corresponding relief for grid connectivity, general network access, and inter-state transmission system‑waiver continuity. If granted, these complementary measures would further shield affected projects from evacuation‑related risks during the extended implementation window.
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