Electric power transmission association seeks protection against delays in inter-state projects

In a formal representation addressed to Power Secretary Pankaj Agarwal, the Electric Power Transmission Association (EPTA) requested significant changes to the tariff-based competitive bidding (TBCB) framework governing inter-state transmission projects. The association wants a deemed commercial operation date, full tariff recovery, and protection against penalties when project commissioning stalls due to delays in separately awarded interconnected facilities.

Transmission projects rely on synchronized completion between the main transmission line and associated substations or grid connections. Under the current framework, developers often face financial penalties and revenue losses when external grid delays postpone their project commissioning, disrupting expected cash flows. Power sector companies, lenders, and infrastructure CAs should review project risk allocations, contract clauses, and contingent liabilities for ongoing transmission bids.

Watch for upcoming notifications or amendments from the Ministry of Power regarding the TBCB framework. The bottom line is that securing liability shields protects power developers from unearned financial penalties and stabilizes infrastructure investments.