Summary:
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# ✅ **DETAILED SUMMARY**
## **1. Issuing Authority & Date**
* **Government of India – Ministry of Power (MoP)**
* File No. **48-6/18/2025-NRE Section**
* Location: **Shram Shakti Bhawan, New Delhi**
* Date: **13th November 2025**
## **2. Recipients**
Issued to:
1. CMD, **NTPC Limited**
2. CMD, **NHPC Limited**
3. CMD, **SJVN Limited**
4. MD, **Solar Energy Corporation of India Ltd. (SECI)**
## **3. Subject**
**Issue regarding pending signing of Power Sale Agreements (PSAs) and Power Purchase Agreements (PPAs) for Renewable Energy (RE) capacity.**
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# ⚡ **4. Background & References**
The communication refers to:
1. **Minutes of the Meeting (MoM) dated 17 October 2025** chaired by Secretary (Power) to review RE capacity procurement and delays.
2. **MNRE Office Memorandum dated 10 November 2025**, presenting its response on REIA (Renewable Energy Implementing Agencies) issues.
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# 📌 **5. Key Issue Identified**
There is a **significant delay**—approximately **42 GW of renewable energy capacity**—for which **Letters of Award (LoAs)** have been issued, but **PPAs/PSAs have not been executed**.
### Reasons Identified:
* **Low demand** from DISCOMs for plain **variable renewable electricity (VRE)**.
* Rising **preference for storage-based renewable power**, which offers:
* **Higher dispatchability**
* **Lower and competitive costs**
* These **legacy LoAs** (without storage) are hindering:
* Transmission planning
* Overall sectoral progress
* Serious project developers’ timelines
MoP expressed concern that continued delays are causing **substantial systemic blockages**.
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# 🛑 **6. Guidance from the Ministry of Power**
MoP advises REIAs to:
* Conduct **deep due diligence**
* Take **case-by-case decisions**
* **Cancel PSAs/PPAs** when execution is not feasible
* **Cancel LoAs** only where PSA signing is clearly unlikely
This indicates flexibility, not automatic cancellation.
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# 🏛️ **7. MNRE’s Clarification (Referenced in MoP Letter)**
MNRE, in its 10 November 2025 communication, clarified:
### 🔹 **No blanket cancellation**
MNRE stated that **there will be NO blanket cancellation of LoAs** issued by REIAs.
### 🔹 Case-wise review required
REIAs must:
* Undertake a **detailed review**
* Carefully examine:
* Grid transmission constraints
* Market conditions
* DISCOM demand
* PSA feasibility
Where LoAs exist but PSAs are not progressing, **measured decisions** must be taken.
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# 📝 **8. Final Advisory (Page 2)**
### **MoP formally advises:**
1. **For LoAs where PSAs are unlikely**
→ REIAs *may proceed toward cancellation*, following MNRE guidelines.
2. **Further actions must be taken in consultation with respective project developers**.
3. **Any cancellation must follow MNRE-approved principles**.
4. This advisory has been issued **with approval of the Competent Authority**.
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# 📤 **9. Distribution**
Copy sent to:
* **Secretary, MNRE**, Atal Akshay Urja Bhawan, New Delhi
* **PPS to Secretary, MoP**
* **PPS to AS (R&R), MoP**
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# 📚 **10. Summary Statement (In Plain Words)**
The Ministry of Power is addressing a **major backlog** of **42 GW renewable projects** stuck because **PSAs/PPAs have not been signed** despite LoAs being issued. The Ministry acknowledges the shift in market preference toward **dispatchable, storage-based renewable power** and the falling demand for traditional VRE-only projects.
MoP instructs REIAs such as SECI, NTPC, NHPC, and SJVN to **review each project individually** and:
* Proceed with **PSA/LoA cancellation** **only** where signing is genuinely unviable.
* Avoid **blanket cancellation**, as confirmed by MNRE.
* Work **in consultation with developers**.
* Follow MNRE guidelines and Competent Authority approval.
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