As a result, shares of clean energy players such as Suzlon Energy Ltd., and Inox Wind Ltd.gained over 5% in trade on Monday, August 17.
As per the power regulator’s order over the weekend, the power producers will have to pay ₹1,000 per megawatt (MW) each day to obtain the extra time for the land and financing requirements. They also have to pay ₹3,000 per mega watt (MW) per day for delays in beginning commercial operations.
The power regulator’s order comes after many firms approached it seeking more time for their delayed projects that were still being developed as India’s grid planning authority had started to serve disconnection notices.
The regulator said that grid connectivity is a limited resource and projects that hold the grid capacity without any progress could prevent others from using the same.
Several clean energy contracts in India have been stalled because of a lack of transmission infrastructure. Firms can receive up to three extra months to finish complete the land requirements, six additional months to get financing and 12 more months to commission projects, as per the regulator.
Those who still cannot meet the deadlines are at risk of losing their grid connectivity as well as associated bank guarantees.
India is currently looking at adding around 500 GW of non-fossil fuel-based power from around 300 GW.
Shares of Inox Wind are trading 4.6% higher at ₹77.08. The stock is down 37% so far this year.
Shares of Suzlon Energy are also trading 3.1% higher on Monday at ₹48.56. The stock is still down 7% so far this year.
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