The Telangana Electricity Regulatory Commission (TGERC) has approved an application filed by the state’s power distribution companies, Southern Power Distribution Company of Telangana Limited (TGSPDCL) and Northern Power Distribution Company of Telangana Limited (TGNPDCL), seeking an extension of project timelines under Component-A of the PM-KUSUM Scheme. The order was issued on May 18, 2026, by a Commission bench comprising Chairman Dr. Justice Devaraju Nagarjun, Member Technical Raghu Kancharla, and Member Finance Cherukuri Srinivasa Rao.
The matter relates to an earlier order passed by the Commission on April 22, 2025, which approved the procurement of 4000 MW of decentralized, ground-mounted, grid-connected solar power for a period of 25 years. Out of the total capacity, 1000 MW was specifically reserved for Women Self-Help Groups under the Indira Mahila Shakti Scheme. Following the approval, the Telangana DISCOMs signed Power Purchase Agreements (PPAs) with multiple solar power developers.
During project execution, developers faced several challenges that delayed progress. These included difficulties in obtaining statutory approvals, land acquisition issues, delays in grid connectivity, supply chain disruptions, and problems in achieving financial closure. Considering these issues, the Ministry of New and Renewable Energy (MNRE) issued an Office Memorandum on March 28, 2026, allowing extensions in project deadlines under the PM-KUSUM guidelines.
Since the existing PPAs had already been approved by the Commission, the DISCOMs approached TGERC seeking permission to amend the agreements in line with the revised MNRE guidelines. The petitioners informed the Commission that granting additional time would help prevent project cancellations, support renewable energy development in Telangana, and assist the state in meeting its Renewable Purchase Obligations without creating any extra burden on tariffs or financial commitments.
As per the original agreement conditions, developers were required to complete financial closure within 180 days from the issuance of the Letter of Award and commission the projects within nine months from the signing of the PPAs. The agreements also included provisions for liquidated damages in case of delays extending up to eleven months.
After examining the petition and hearing the submissions made by the petitioners’ representative, Law Attaché Sri Mohammad Bande Ali, the Commission accepted the request and allowed the application without imposing any costs.
Under the revised order, the deadline for financial closure has now been extended up to September 30, 2026, while the final commissioning deadline has been extended until March 31, 2027. The Commission has also directed the TGDISCOMs to make necessary amendments to the PPAs executed on or before December 31, 2025, and submit the revised copies for official record purposes.
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