Is Unconditional Letter of Credit the Answer to Solar, Wind Payment Issues?
Can mandatory letters of credit solve the persistent issue of payment delays by DISCOMs?
September 11, 2019
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Cases of payment delays to renewable generators have become common and on the rise. However, the Ministry of Power has given these developers a shot in the arm by introducing mandatory letters of credit which is a bold step to make the payment security mechanism more robust to ensure timely payments by distribution companies.