Renewable energy projects awarded via TBCB qualify as PPP projects, SEBI clarifies
The Securities and Exchange Board of India (SEBI) has clarified that renewable energy projects awarded through tariff-based competitive bidding (TBCB) or other open competitive bidding mechanisms to special purpose vehicles (SPVs) of infrastructure investment trusts (InvITs) will be treated as Public-Private Partnership (PPP) projects under the SEBI (Infrastructure Investment Trusts) Regulations, 2014.
The clarification was issued in response to a request for informal guidance submitted by Sustainable Energy Infra Investment Managers Private Limited, the investment manager of Sustainable Energy Infra Trust (SEIT).
SEIT, which has been registered as an InvIT with SEBI since August 2023, currently holds 100% equity interest in six portfolio companies owning eight solar energy projects. The investment manager had sought clarification on whether renewable energy projects secured through competitive bidding, with government entities acting as power off-takers, qualify as PPP projects under the InvIT framework.
In its submission, the applicant stated that such projects exhibit key PPP characteristics. These include long-term power purchase agreements (PPAs) of around 25 years between public sector off-takers such as Solar Energy Corporation of India (SECI), NTPC, or state distribution licensees and private SPVs.
The applicant also cited the provision of public services through electricity supply, private sector investment and management, clearly defined risk allocation under PPAs, and contractual performance obligations including penalties for under-generation.
While SEBI noted that it did not necessarily agree with every aspect of the applicant’s interpretation, the regulator clarified that renewable energy generation and supply projects awarded by government or public sector entities to an InvIT’s SPV through open competitive bidding or through a memorandum of understanding (MoU) qualify as PPP projects under Regulation 2(1)(zm) of the InvIT Regulations.
SEBI further observed that “Electricity Generation”, “Electricity Transmission”, and “Electricity Distribution” are included in the updated Harmonized Master List of infrastructure sub-sectors notified by the Ministry of Finance on September 19, 2025. Based on this classification, renewable energy generation projects qualify as infrastructure projects under the InvIT Regulations.
The regulator also stated that projects awarded through TBCB fulfil the regulatory requirement that the private concessionaire SPV be selected through open competitive bidding or through an MoU with the relevant authority.
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