The Maharashtra Electricity Regulatory Commission (MERC) has rejected Tata Power Renewable Energy Limited’s (TPREL) request to extend the Scheduled Commercial Operation Date (SCOD) of its 200 MW solar photovoltaic project in Hingoli district, Maharashtra. The decision was issued in Case No. 78 of 2026, with the Commission ruling that the delays cited by the developer did not qualify as Force Majeure under the Power Purchase Agreement (PPA).

TPREL had signed a 25-year PPA with Maharashtra State Electricity Distribution Company Limited (MSEDCL) in August 2023 for the 200 MW solar project. Under the agreement, the project was required to achieve commissioning by February 1, 2025. However, the developer could not complete the project within the scheduled timeline and sought an extension until July 2026 without financial penalties.

In its petition, TPREL identified three major factors that it said were beyond its control. These included heavy rainfall and flooding in Hingoli during September 2024, difficulties in obtaining land from farmers for transmission corridors, and global supply chain disruptions that resulted in shortages of CT/PT electrical equipment.

MERC examined the claims and concluded that the circumstances did not meet the requirements for Force Majeure under the PPA. Regarding the heavy rainfall and flooding, the Commission acknowledged the severity of the weather event but observed that TPREL had not established a direct and continuing connection between the September 2024 event and the prolonged delay in project execution.

The Commission also noted that TPREL had failed to submit the mandatory periodic progress reports and cessation notices required under the PPA for claiming Force Majeure relief.

On land-related challenges, MERC held that acquiring project land and negotiating with landowners are normal commercial risks that remain the responsibility of the project developer. The Commission similarly rejected the equipment shortage argument, noting that supply delays and vendor-related dependencies were specifically excluded from Force Majeure protection under the PPA.

As TPREL failed to establish a valid Force Majeure event, MERC rejected the requested SCOD extension. The Commission noted that only 100 MW of the contracted capacity was commissioned within the maximum permissible extended deadline of July 31, 2025. Accordingly, the remaining 100 MW portion of the PPA was formally terminated, reducing the active contracted capacity to 100 MW.

MERC also ruled that the additional 50 MW commissioned by TPREL in April 2026 cannot be treated as part of the original PPA.

The Commission authorized MSEDCL to recover liquidated damages of Rs. 23.74 crore from TPREL for the delay. However, since power from the initial 100 MW was supplied at 75% of the applicable tariff after the SCOD, MERC directed MSEDCL to recalculate the payments at the full tariff from June 30, 2025. The resulting differential amount, along with applicable interest, will be adjusted against the damages before MSEDCL releases TPREL’s Rs. 25.96 crore performance bank guarantee.