In an Order dated 13th August, 2020, the Ministry of New & Renewable Energy (“Ministry”) has issued information regarding extension of time in Scheduled Commissioning Date of Renewable Energy (RE) Projects considering disruption caused due to lockdown implemented to prevent the spread of the pandemic COVID-19.
Key Takeaways:
- All Renewable Energy (“RE”) implementing agencies of the Ministry of New & Renewable Energy (MNRE) will treat lockdown due to COVID-19, as Force Majeure.
- 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, will be given a time extension of 5 (five) months from 25th March 2020 to 24th August 2020. 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 covered above, 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 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.
Background:
The present Order has been issued in suppression of the Ministry’s Office Memorandum dated 17th April, 2020 and 30th June, 2020.
The Ministry in a previous Office memorandum dated 20th March, 2020 had instructed 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.
In light of this, the present Order has been issued.
Source: Ministry of New & Renewable Energy
