Private power transmission developers have urged the government to provide automatic financial and contractual relief when projects are delayed because interconnected transmission infrastructure is not ready. The industry has sought deemed commercial operation dates, full tariff recovery and protection from penalties in such cases.
New Delhi, November 12 — Private power transmission developers have urged the Ministry of Power to strengthen the obligations of Central Transmission Utility of India Ltd (CTUIL) and protect developers from financial losses caused by delays in interconnected transmission infrastructure.
In a representation to Power Secretary Pankaj Agarwal, the Electric Power Transmission Association (EPTA) has sought changes to the tariff-based competitive bidding (TBCB) framework governing inter-state transmission projects.
Developers seek deemed COD
One of EPTA’s key demands is that developers should be granted a deemed Commercial Operation Date (COD) once they have completed all work under their control, even if the transmission asset cannot be charged because an interconnected facility is unavailable.
The association has also sought provisional recovery of 100% of annual transmission charges from the deemed COD.
Transmission projects are increasingly interconnected. A transmission line, substation, bay or reactor developed by one company may depend on another separately awarded project becoming operational on time.
If the interconnected project is delayed, a developer that has completed its own work may still be unable to commission the asset and start recovering tariffs.
Rising costs without tariff recovery
EPTA said such delays expose developers to debt-servicing costs, interest during construction, operation and maintenance expenses, insurance costs, working-capital requirements and expenses related to extending bank guarantees.
The association argued that the existing Transmission Service Agreement framework gives the nodal agency a coordination role but lacks sufficiently clear obligations, timelines and automatic commercial relief.
EPTA wants CTUIL’s responsibilities expanded to ensure time-bound coordination of interconnected transmission assets and facilitate alternative technical arrangements where possible.
Protection from penalties sought
Developers have also sought a day-for-day extension of scheduled COD when delays are beyond their control.
They want protection from liquidated damages, invocation of performance guarantees and default or termination consequences in such cases.
EPTA has also requested similar relief for transmission projects already under implementation.
Renewable expansion increases transmission needs
The demands come as India accelerates transmission infrastructure development to support its target of 500 GW of non-fossil-fuel-based installed capacity by 2030.
Rapid renewable-energy expansion across geographically dispersed generation centres has increased dependencies between different transmission projects.
EPTA said the proposed changes could prevent completed or substantially completed assets from becoming financially stranded and help maintain investor confidence in India’s transmission sector.
