MNRE issues notification to penalise delay in construction of transmission infrastructure

Ministry of New and Renewable Energy (MNRE) has issued a notification regarding delays in construction of transmission system by solar park developers.

As per the notification, any delay in the scheduled commissioning date of solar projects due to unavailability of internal execution or transmission system by solar park developers will be liable to a penalty.

If a delay in the scheduled commissioning of solar projects is caused due to unready internal evacuation or transmission systems by solar park development agency or solar park implementing agency, then the agency responsible will attract a penalty of Rs 1,000 per day.

The penalty will be recovered through either of the following two methods:

  • The government will first try to recover the amount from solar park development agency from the central financial assistance (CFA) given to them
  • In case CFA is not available, then NTPC Limited will recover the amount from the solar park developer. In such cases, NTPC may issue orders for extension of time, and then act on recovery of penalty.

Recently, MNRE had proposed reducing the commissioning timelines of solar projects to assist in the timely achievement of the 100 GW solar target by 2022. Solar PV projects inside a solar park have a commissioning timeline of 15 months from the date of power purchase agreement (PPA). Of this, nine months are provided for financial closure and six months for project construction. However, delays in procurement of land as well as insufficient transmission infrastructure have led to extensions in project commissioning in many states, derailing the capacity addition timelines.

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