New Delhi: Private power transmission developers have urged the Ministry of Power to amend the tariff-based competitive bidding (TBCB) framework to protect projects from financial losses and contractual penalties arising from delays in interconnected transmission infrastructure.
In a representation to Power Secretary Pankaj Agarwal, the Electric Power Transmission Association (EPTA) has sought stronger accountability for Central Transmission Utility of India Limited (CTUIL), along with provisions for deemed commercial operation date (COD), full tariff recovery and automatic contractual relief where delays are attributable to other transmission projects.
The association said growing interdependence among transmission projects has exposed developers to significant financial risks, particularly when completed transmission lines, substations or other assets cannot be commissioned because interconnected infrastructure being developed by another transmission service provider (TSP) is not ready.
According to EPTA, developers often complete their contractual obligations but remain unable to energise their assets or recover transmission charges due to delays in separately awarded interconnected facilities.
Such delays leave developers bearing debt-servicing obligations, interest during construction, operation and maintenance expenses, insurance costs, working-capital requirements and expenses associated with extending bank guarantees.
The association argued that the existing Transmission Service Agreement (TSA) framework provides for coordination of interconnection facilities but lacks clearly defined, enforceable obligations and automatic financial relief mechanisms.
Among its key demands, EPTA has proposed that transmission developers be granted deemed COD once they complete all works within their control, even if the infrastructure cannot be energised because the required interconnection facilities are unavailable.
It has also sought provisional recovery of 100 percent of annual transmission charges (YTC) from the deemed COD.
Additionally, the association has demanded a day-for-day extension of scheduled commissioning deadlines and protection against liquidated damages, invocation of performance guarantees and contractual default or termination proceedings for delays beyond a developer’s control.
EPTA warned that the absence of such safeguards creates open-ended financial exposure for developers, potentially leaving completed transmission assets commercially stranded.
The association has called for expanding CTUIL’s responsibilities to include time-bound coordination of interconnected transmission projects and ensuring the timely availability of essential infrastructure.
Where originally planned interconnection facilities are delayed, CTUIL should also facilitate technically feasible alternative arrangements, it suggested.
EPTA argued that CTUIL, given its responsibilities for transmission planning, connectivity and implementation monitoring, is best positioned to manage dependencies between separately awarded transmission packages.
The association has also requested administrative instructions extending similar protections to projects already under implementation.
The representation comes as India accelerates transmission infrastructure development to support its target of 500 GW of non-fossil-fuel-based installed power capacity by 2030.
The rapid expansion of renewable energy projects across geographically dispersed generation centres has increased the complexity of transmission planning and the need for coordination among multiple developers.
EPTA maintained that transmission-related risks should be allocated to entities best positioned to manage them, rather than leaving individual developers financially exposed to delays outside their contractual control.
The association has offered to assist the Ministry in drafting the proposed contractual amendments and implementation mechanisms.
If accepted, the proposals could significantly alter risk allocation, tariff recovery and accountability under India’s inter-state transmission bidding framework, while potentially strengthening investor confidence in private transmission infrastructure development.
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