Central Transmission Utility of India Limited (CTUIL) has issued an advisory to streamline the handling of Force Majeure (FM) and Change in Law (CIL) claims related to transmission projects across India. The advisory provides a structured framework for transmission service providers (TSPs) to submit and manage claims arising from unforeseen events, regulatory changes, and other circumstances that may affect project execution.
The move is aimed at improving transparency, consistency, and efficiency in the evaluation of contractual claims under Transmission Service Agreements (TSAs). With India’s transmission sector witnessing rapid expansion due to rising electricity demand, renewable energy integration, and development of new power corridors, effective risk management has become increasingly important for infrastructure developers.
Under the advisory, transmission developers are expected to follow defined procedures while submitting Force Majeure and Change in Law claims. These include providing relevant supporting documents, details of the event, impact assessment, and other information required for review. The framework is expected to help stakeholders address contractual issues in a more systematic manner.
Force Majeure provisions are generally applicable to events beyond the control of project developers that may cause delays or disruptions in project implementation. These events can include natural disasters, regulatory restrictions, or other exceptional circumstances that affect construction and operations.
Change in Law provisions, meanwhile, cover situations where changes in government policies, regulations, taxes, duties, or legal frameworks create financial or operational impacts on transmission projects. Proper evaluation of such claims is important for maintaining contractual balance between project developers and stakeholders.
The advisory comes at a critical time for India’s power transmission sector, which is playing a key role in supporting the country’s clean energy transition. The rapid addition of solar and wind capacity requires stronger transmission networks to ensure reliable evacuation and distribution of renewable power across regions.
CTUIL plays an important role in planning and coordinating inter-state transmission systems in India. As the country expands renewable energy capacity and develops green energy corridors, the need for efficient transmission planning and project execution mechanisms has increased significantly.
For transmission developers, the new advisory is expected to provide greater clarity on claim submission processes and reduce uncertainties related to project risks. Improved clarity around Force Majeure and Change in Law mechanisms can also support investor confidence and encourage greater participation in large-scale transmission infrastructure projects.
The latest step reflects CTUIL’s continued efforts to strengthen the operational framework for India’s transmission ecosystem and support the timely development of critical power infrastructure required for the country’s growing energy needs.
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