Hon’ble CERC condones time overrun in commissioning of Tanda STPS Stage-II Units I & II

05.05.2025

NTPC Limited had filed Petition No. 281/GT/2020 before the Hon’ble Central Electricity Regulatory Commission (“Hon’ble CERC”) seeking approval of tariff for the 1320 MW Tanda Super Thermal Power Station (“Tanda STPS”), Stage-II, comprising two supercritical units of 660 MW each, for the control period 2019–2024. The Petition also included a detailed justification for time overrun in the commissioning of both units.

While the Scheduled Commercial Operation Dates (“CODs”) of Unit-I and Unit-II were 10.01.2019 and 10.07.2019 respectively, actual CODs were declared on 07.11.2019 (delay of 301 days) and 01.07.2021 (delay of 722 days). The delays were attributed to factors including land acquisition impediments, stay orders from courts, ban on sand mining by NGT and High Courts, excessive rainfall, and COVID-19 disruptions.

Commissioning Delay of Units I & II (301 days and 722 days respectively)

Unit-I and Unit-II of the Tanda STPS Stage-II were originally scheduled for commissioning by 10.01.2019 and 10.07.2019 respectively. However, Unit-I was declared commercially operational on 07.11.2019 (delay of 301 days), and Unit-II on 01.07.2021 (delay of 722 days). The delay in both units was attributed to a complex interplay of site-level challenges, judicial interventions, and unforeseen external disruptions.

One of the primary causes affecting both units was the persistent issue of land acquisition, especially Government Abadi land, where continuous resistance from villagers and homestead oustees (“HSOs”) obstructed access. This was further aggravated by repeated delays in the disbursement of One-Time Settlement (“OTS”) compensation by the district administration. An Order passed by the Hon’ble Supreme Court passed in 2016 further stalled physical possession of essential parcels of land, delaying foundational and civil works across the project site.

Further compounding the delays were the prolonged restrictions on sand mining imposed by the Hon’ble National Green Tribunal and various High Courts, which significantly affected the availability of essential construction material, particularly for the foundation works of both units.

This, combined with excessive rainfall during key construction periods (especially monsoons of 2015 and 2016), repeatedly disrupted site progress.

Additionally, the outbreak of the COVID-19 pandemic dealt a severe blow to the project’s execution timelines. Nationwide lockdowns beginning in March 2020 and continuing into the second wave during April–May 2021 led to manpower shortages, supply chain disruptions, and large-scale demobilization of contractors. These disruptions were duly recognized as force majeure by executing agencies and together accounted for nearly 8 months of delay. As a result, readiness of key systems such as Boiler, Turbine Generator, steam blowing, and oil flushing was deferred well beyond planned dates. These cascading delays collectively resulted in the time overrun for both units.

Findings and Order of Hon’ble CERC

By order dated 02.05.2025, the Hon’ble Commission examined the reasons and supporting documentation in detail and was pleased to condone the time overrun for both units, while holding that “In our considered view, the delay… was beyond the control of the Petitioner, for which the Petitioner cannot be held liable… Accordingly, on a prudence check, we condone the delay…”.

Accordingly, the Hon’ble Commission was pleased to condone the entire delay of 722 days, having found the same to be attributable to factors beyond the Petitioner’s control. Tariff determination was carried out on a prudent basis without any reduction on account of time overrun.

A copy of the Order dated 02.05.2025 passed by the Hon’ble CERC in Petition No. 281/GT/2020 can be accessed here.

The Petitioner, NTPC Limited, was represented before the Hon’ble CERC by Shri Venkatesh, Founding Partner, and Aashwyn Singh, Associate, from SKV Law Offices.