Mumbai, June 26 -- 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.
Published by HT Digital Content Services with permission from Construction World.