The Telangana Electricity Regulatory Commission (TSERC) has dismissed a petition filed by solar power developer Sunshakti Solar Power Projects Private Limited, rejecting its request to extend the Scheduled Commercial Operation Date (SCOD) of its 50 MW solar power project in Kamareddy and refund a penalty of ₹7.43 crore. The order was issued on September 2, 2026, by a bench comprising Chairman Dr. Justice Devaraju Nagarjun and Member (Technical) Sri Raghu Kancharla.
Sunshakti Solar had signed a 25-year Power Purchase Agreement (PPA) with the Northern Power Distribution Company of Telangana Limited (TGNPDCL) in February 2016 at a tariff of ₹5.3497 per kWh. The project’s SCOD was fixed for May 9, 2017.
However, the project was synchronized in two phases. The first 30 MW was synchronized on August 4, 2017, resulting in an 87-day delay, while the remaining 20 MW was synchronized on November 2, 2017, resulting in a 177-day delay. Following the delays, TGNPDCL encashed Performance Bank Guarantees (PBGs) amounting to ₹7,43,50,000 in April 2018.
Sunshakti approached TSERC seeking condonation of the delay, extension of the SCOD to the actual synchronization dates and a full refund of the encashed bank guarantees. The developer argued that several force majeure events were responsible for the delay.
These included heavy rains between July and September 2017, administrative delays linked to the reorganization of revenue districts in Telangana, cash flow problems following demonetization in November 2016, difficulties associated with the GST rollout in July 2017 and challenges in acquiring continuous land parcels for the project. The company also referred to government communications that had suggested extensions of SCODs for certain state solar projects.
TSERC rejected these arguments, observing that the developer had not established a direct connection between the cited events and its failure to meet the May 9, 2017 deadline. The Commission noted that several events, including the heavy rains and GST implementation issues, occurred after the original SCOD had already expired.
The Commission also held that financial or cash flow difficulties caused by demonetization could not be treated as force majeure because they did not make contractual performance legally or physically impossible. Land acquisition was also considered a risk specifically assigned to the developer under the PPA.
TSERC further clarified that general government communications regarding SCOD extensions do not automatically modify contractual obligations. Any change to the SCOD requires independent consideration and regulatory approval on a case-by-case basis.
The Commission also highlighted the developer’s significant delay in approaching the regulator. Although TGNPDCL had directed Sunshakti to approach TSERC in December 2017, the company filed its petition more than four years later.
Citing the principle that the law does not assist those who sleep over their rights, TSERC termed the delay unpardonable. It consequently rejected all requests for SCOD extension and refund of the ₹7.43 crore penalty, bringing the proceedings in favor of TGNPDCL.
