Power ministry directs REIAs to resolve 42 GW backlog of unsigned PPAs and PSAs

The Ministry of Power has asked the Renewable Energy Implementing Agencies to address the bottleneck around nearly 42 GW of awarded renewable energy projects that still lack Power Purchase Agreements and Power Sale Agreements. The directive, issued on November 13, 2025, seeks to release transmission capacity that has been blocked due to stalled contracting.

The guidance follows a review meeting held on October 17, 2025 and subsequent clarifications from the Ministry of New and Renewable Energy. During the meeting, the Secretary of Power noted that LoAs for about 42 GW of capacity had not moved to the contracting stage. NTPC, NHPC, SJVN, and SECI reported that demand from distribution companies for plain variable renewable power has weakened. Discoms are now opting for storage-backed renewable energy because it offers dispatchability at competitive prices.

The Ministry of Power has asked the REIAs to carry out due diligence and take decisions on a case-by-case basis. An earlier view suggested concluding PSAs where feasible or cancelling LoAs where progress was not possible. MNRE clarified through an Office Memorandum dated November 10, 2025, that there would be no blanket cancellation. Instead, the REIAs must review each pending LoA and classify the cases based on viability.

The final guidance states that REIAs may cancel LoAs if PPA signing is not possible, after consulting project developers and following MNRE rules. The step is intended to clear uncontracted capacity and free up transmission corridors for projects that are more likely to proceed.

A related Power Peak Digest report on November 4, 2025 examined the wider 93 GW backlog and the government’s first set of directions to the REIAs, which set the stage for the latest guidance.