Summary:
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## **1. Document Overview**
| **Parameter** | **Details** |
| — | — |
| **Issuing Authority** | Ministry of New and Renewable Energy (MNRE), Government of India |
| **Date** | 6 April 2026 |
| **Subject** | Directions to Renewable Energy Implementing Agencies (REIAs) |
| **Addressees** | SECI, NTPC, NHPC, SJVN (the four REIAs) |
| **Purpose** | To implement decisions from a high-level meeting held on 27 March 2026 (chaired by Hon’ble Cabinet Minister for NRE) reviewing **pending PSAs/PPAs** |
| **Status** | **Immediate compliance required** (directions issued with approval of Hon’ble Minister) |
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## **2. Key Directives for REIAs – Summary**
| **Sl. No.** | **Direction** | **Business Impact** |
| — | — | — |
| **i** | **Future RE procurement bids** – only **SECI** will act as the REIA (intermediary procurer). Others (NTPC, NHPC, SJVN) will only handle bids already issued by them. | Consolidation of renewable procurement with SECI. NTPC/NHPC/SJVN exit new bidding – major shift in RE procurement landscape. |
| **ii** | **Pending PSAs/PPAs** – REIAs must review all cases where LoAs issued but PSA signing pending for months. Categorize into: (a) likely to sign, (b) extremely difficult/unlikely. For (b), if awardees have not applied for connectivity (LoA/Land/Land+BG route), cancel LoAs in phased manner. | **Clear signal of cancellation risk** for delayed projects. Developers with pending PSAs must act fast or lose LoA. |
| **iii** | **Post-tender negotiations** for modifying discovered tariffs – to be **discouraged**. | End of tariff renegotiation culture after bidding. Bids must be final at discovery. |
| **iv** | **Before issuing bids** – engage States/end procurers to assess actual power requirements (including peak demand). Obtain **procurement commitments in advance**. | Reduces risk of unsubscribed bids / unsigned PSAs. Better demand-supply alignment. |
| **v** | **Green Shoe option** – not to be included without prior approval of the **Appropriate Commission** (as per TBCB Guidelines). | Prevents automatic over-subscription of bids; requires regulatory approval for Green Shoe. |
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## **3. Background Context (from referenced 27 March 2026 meeting)**
– The meeting reviewed **high pendency of PSAs/PPAs** signed between REIAs, developers, and DISCOMs/end procurers.
– Despite LoAs issued many months ago, PSAs remain unsigned – causing project delays, blocked capacities, and stranded investments.
– MNRE is now **tightening discipline** to ensure bids translate into actual power procurement agreements.
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## **4. Strategic Business Implications**
### **For Renewable Energy Developers**
| **Impact Area** | **Implication** |
| — | — |
| **Future bids** | Only SECI will be the counterparty for new RE bids. Developers must align with SECI’s processes, timelines, and tender terms. |
| **Pending LoAs with NTPC/NHPC/SJVN** | These will still be honored but no new bids from them. Developers with existing LoAs from these agencies must expedite PSA signing. |
| **Risk of LoA cancellation** | If PSA signing is “extremely unlikely” and connectivity not applied, LoA may be cancelled. **Urgent action required** for such projects. |
| **No tariff renegotiation** | Discovered tariff is final – no post-bid negotiation. Bidders must bid realistically. |
| **Green Shoe restriction** | No automatic capacity expansion without Commission approval – reduces uncertainty for incumbent winners. |
### **For REIAs (SECI, NTPC, NHPC, SJVN)**
| **REIA** | **Impact** |
| — | — |
| **SECI** | Becomes the **sole intermediary procurer** for future RE bids – increased responsibility but also dominant market position. |
| **NTPC, NHPC, SJVN** | Role reduced to **legacy portfolio management** only. No new RE procurement bids. May focus on own generation or other mandates. |
### **For State DISCOMs / End Procurers**
– **Must commit demand upfront** before bids are issued – no more “wait and watch” approach.
– Better alignment of bids with **peak demand** and actual requirement.
### **For Lenders & Investors**
– Reduced risk of unsigned PPAs post-bid – improves project bankability.
– But cancellation of pending LoAs could lead to **stranded developer equity** in some cases.
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## **5. Compliance & Enforcement**
– Directions are **mandatory** – issued with approval of Hon’ble Minister (NRE).
– REIAs must take **necessary action** including:
– Reviewing all pending LoAs
– Categorizing them
– Cancelling non-viable ones in phased manner
– Discontinuing post-tender negotiations
– Seeking prior Commission approval for Green Shoe option
– **No exemption** for past bids – applies to existing pending cases as well.
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