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Government enforces strict timelines on approval of solar tariff from SERC

Government in its effort to expedite the entire process of solar project development, right from tendering and auctioning to commissioning has amended competitive bidding process and has been taking appropriate actions through time to time amendments in regulations. In a recent amendment to competitive bidding guidelines, government has addressed issue like delay in adoption of tariff by SERC, where states have been taking more than a year on approval of tariff, which substantially delays commissioning scheduled of project. And subsequently the lending institutions are reluctant to provide loans to the developers. As per new amendment, the government has set timeline of 60 days for the adoption of a tariff by the appropriate commission. In case of a failure to do so by the appropriate commission, the tariffs will be deemed to be have been adopted by the appropriate commission. Need of the hour is that government must focus on strict enforcement of these amendment, so as to timely address concerns on ground else delay would cause market momentum to be lost.