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Developers are experiencing cash flows issues in amidst of cancellation and re-issuance of auctions

A developer has to bear cost of EMD, bid bond, Other charges that are part of the tender process include document fees, processing fees, and success fees. Though these fees may not be extremely high but due to delays in auction process they face cash flow issues. EMD may take two to three month to be disbursed. Also performance bank guarantees, which are to be returned immediately after the successful commissioning of a project is not released to developers on time. Investments in renewable energy projects has also been affected by this and solar IPPs are cautious of bidding for tenders.

SECI and NTPC to moot over reduction of such delays and cancellation of tenders, as it may disinterest developers and investors in the segment.