The project faced significant delays due to environmental permitting. Delays to the start of construction, often for more than a year, were a major issue faced by many of the hydropower plants procured at the same time as this hydropower project. At this time, the Procuring Authority did not require an environmental assessment to be submitted with the bid, and the Project Company in question would find it difficult to get the required environmental licence in the time allowed after the contract award.

The licensing process is rigorous and requires significant research, and the requirements from the environment agencies also varied between national and state governments and from state to state. Additionally, as environmental permitting did not commence prior to signing of the PPP contract, the first time the licensing body saw the proposed design was when the Project Company submitted its application, after contract signature. This procedure increased the risk of delays, and a number of power plants were cancelled entirely. In this project, the PPP contract was not terminated, and the Project Company was given the additional time needed to obtain the required licences.