India

MNRE extends time of RE Projects up to 24.8.2020 considering disruption due to lockdown due to COVID-19

The Ministry of New and Renewable Energy(MNRE) has decided that all RE projects under implementation as on the date of lockdown, i.e. 25th March 2020, through RE Implementing Agencies designated by the MNRE or under various schemes of the MNRE, shall be given a time extension of 5 (five) months from 25th March 2020 to 24th August 2020. Approval to the proposal was accorded by the Minister of State(I/C) for Power and Renewable Energy Shri R. K. Singh. The decision has been conveyed wide Ministry’s latest OM dated 13.8.2020.   RE developers had represented to the Ministry that they may be granted a general time extension on account of lock down (due to COVID-19) and additional time required for normalization after such lockdown.The decision was taken after  issue was examined in the Ministry.

As such, all Renewable Energy (RE) implementing agencies of the Ministry of New & Renewable Energy (MNRE) will treat lockdown due to COVID-19, as Force Majeure. This blanket extension, if invoked by the RE developers, will be given without case to case examination and no documents/evidence will be asked for such extension. The timelines for intermediate milestones of a project may also be extended within the extended time provided for commissioning.

The Developers of the projects as covered in the instant may also pass on the benefit of such time-extension, by way of granting similar time-extensions, to other stakeholders down the value chain like Engineering Procurement Construction (EPC) contractors, material, equipment suppliers, Original Equipment Manufacturers (OEMs), etc.

The OM says that the State Renewable Energy Departments (including agencies under Power/ Energy Departments of States, but dealing in renewable energy) may also treat lockdown due to COVID-19, as Force Majeure and may consider granting appropriate time extension on account of such lockdown.

Earlier,  Ministry had  issued directions to SECI, NTPC and Addi. Chief Secretaries / Pr. Secretaries / Secretaries of Power / Energy / Renewable Energy (RE) Departments of State Governments / UT Govts. / Administrations, to treat delay on account of disruption of the supply chains due to spread of corona virus in China or any other country, as Force Majeure and that they may grant suitable extension of time for projects, on account of corona virus, based on evidences / documents produced by developers in support of their respective claims of such disruption of the supply chains due to spread of corona virus in China or any other country.

Please click here to see MNRE Notification

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