New Delhi, Sept. 22 -- In a rare move, the government is likely to allow renewable energy developers to relinquish stalled projects without invoking bank guarantees, provided power purchase agreements have not been signed, two people aware of the matter said.

Until now, such surrender of projects was not allowed. And in case developers sought to abandon such projects, the government forfeited their bank guarantees. If the move is implemented, there might be a cut-off date for such projects which would be given the exemption.

"Ways are being considered to resolve the issue of unsigned power purchase agreements (PPAs). Government may bring in some relaxation for these projects and allow them to surrender the projects bagged earlier and th...