Private power firms demand shield against project delays

NEW DELHI: Private power transmission developers have urged the Ministry of Power to strengthen the obligations of Central Transmission Utility of India Ltd (CTUIL) and provide automatic financial and contractual relief to projects delayed by the unavailability of interconnected transmission infrastructure, warning that developers are being exposed to mounting costs for delays beyond their control.

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, including deemed commercial operation date, full tariff recovery and protection against penalties where a project's commissioning is held up by delays in separately awarded interconnected facilities.

The association said transmission projects are increasingly interdependent, with the completion and commissioning of a transmission line, substation, bay or reactor developed by one transmission service provider (TSP) often contingent on the timely readiness of an interconnected asset being developed under a separate package by another developer.