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Ministry of New and Renewable Energy proposes one-time relief package for already awarded renewable energy capacities awaiting signing of PPAs
The Ministry of New and Renewable Energy (MNRE), Government of India (GoI), vide Office Memorandum (OM) dated 25 May 2026, has proposed a structured One-Time Relief Package (Proposed Relief Package) to address cases where Letters of Award (LoAs) have been issued by Renewable Energy Implementing Agencies (REIAs), acting as Intermediary Procurers, but Power Purchase Agreements (PPAs) and Power Sale Agreements (PSAs) remain unsigned as on 30 April 2026. This proposal is aimed at providing relief to generating companies holding an aggregate capacity of 44.8 GW of renewable energy (RE), affected by such pendency.
The Proposed Relief Package has been structured under the following 2 (two) tracks:
Demand-side facilitation measures:
These measures are intended to incentivise distribution licensees (DISCOMs) to execute PSAs/PPAs within a 90 day period, extendable by up to 30 days. The measures proposed include:
Supply-side resolution options for developers:
For developers holding stranded LoAs, the proposal provides 3 resolution options, one of which must be elected within the prescribed timeline.
- First, a developer may exit the LoA route while retaining connectivity, subject to a fresh Scheduled Commercial Operation Date (SCOD) and applicable Milestone Extension Charges (MECs). MECs are payable as stipulated with no MEC being levied for the first 2 months post-General Network Access (GNA) effective date for COD achievement.
- Secondly, a developer may substitute its stranded LoA with a PPA signed under another LoA by applying to Central Transmission Utility of India Limited (CTUIL) for conversion to the PPA The SCOD will be as per the substitute PPA, subject to an outer limit of 30 months from the date of conversion. MEC conditions are the same as under Option I.
- Thirdly, a developer may opt for a penalty-free exit by surrendering connectivity and obtaining return of the connectivity bank guarantees, resulting in cancellation of the corresponding REIA LoA. If no option is exercised within time, the penalty-free exit would apply by default.
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