SC’s GIB Case Relief May Shield 8.6 GW RE Projects, Majority in Gujarat: Ind-Ra

India Ratings and Research (Ind-Ra) believes the Ministry of New and Renewable Energy’s decision to classify commissioning delays linked to the Supreme Court’s Great Indian Bustard proceedings. In the long-drawn GIB case, a force majeure-like event could provide material relief to developers for approximately 8.6 GW of renewable capacity. Indi-Ra said in its research that about 2.8 GW of this is being developed by private players and 5.8 GW by government entities and PSUs.

The relief comes at a critical juncture for India’s renewable expansion, particularly in Gujarat’s transmission-constrained zones, where wildlife protection measures have slowed the approval of overhead lines. By mitigating liquidated damages and timeline risk, the move could stabilise project cash flows and protect lender confidence in utility-scale renewable assets.

The extension framework protects projects from liquidated damages under power purchase agreements and supports timely completion. “Accordingly, out of 8.6 GW, the majority of the capacity in Gujarat (6.4 GW) and the balance in Rajasthan are expected to benefit from such SCOD extensions,” added Ameer Banu, Senior Analyst, Ind-Ra.

Ind-Ra opines that this move significantly mitigates liquidated damages exposure arising from commissioning timeline risks, with residual risk largely confined to developers meeting Section 68 application timelines and documentary requirements mandated under the order.

“While some interest during construction-linked cost increases (estimated at 5%–12%) may still arise, these remain manageable through phased debt drawdowns and do not materially compromise project viability,” said Samant Jha, Associate Director, Infrastructure & Project Finance Group, Ind-Ra. Given the credit strength of the majority of the sponsors, the agency believes that cost overruns, if any, are likely to be funded by the sponsors.

SC Gives Relief to Projects Between Mar 21, 2024, and Dec 19, 2025

Projects with SCODs before 21 March 2024, or those that did not apply for Section 68 approval before 19 December 2025, remain outside the ambit of this relief. Any overlaps with earlier extensions will not be considered.

The relief applies to projects whose original Scheduled Commercial Operation Date (SCOD) fell between 21 March 2024 and 19 December 2025, during which developers were unable to secure Section 68 approvals for overhead transmission lines due to the Supreme Court’s directions on protecting GIB habitats and the subsequent constitution of a larger committee, replacing the earlier three-member committee mandated to decide on the matter.

MNRE has directed Solar Energy Corporation of India, NTPC Limited, National Hydroelectric Power Corporation, and Satluj Jal Vidyut Nigam Limited to grant commissioning date extensions equivalent to the period between the later of 21 March 2024 or the Section 68 application date and 19 December 2025, subject to developers furnishing proof of application and undertakings to comply with the Supreme Court-mandated measures.