MNRE Advises Force Majeure Relief for Renewable Projects Hit by West Asia Disruptions
The Ministry of New and Renewable Energy has advised RE implementing agencies and state governments to consider force majeure relief, including two- to four-month extensions, for renewable energy projects delayed by disruptions linked to the prevailing West Asia situation.
August 24, 2026. By Mrinmoy Dey
In an advisory issued recently, MNRE referred to the Ministry of Finance’s Department of Expenditure Office Memorandum dated April 29, 2026, which clarified that the ongoing West Asia situation should be treated as a war event for the purpose of force majeure provisions. The clarification applies where disruptions arising from the situation have directly affected or consequentially impacted contractual obligations under goods and services contracts, as well as construction and works contracts with government agencies. In such cases, procuring entities may invoke force majeure.
Under the provision, contractual completion dates for obligations that were required to be completed on or after February 28, 2026, may be extended by not less than two months and not more than four months without imposing any cost or penalty on the contractor. The exact extension period within this range will be determined by the procuring entity on a case-by-case basis after examining the claim and following the prescribed force majeure procedure.
However, the relief will be subject to specific conditions. The invocation of force majeure will be considered valid only where the parties to the contract were not in default of their contractual obligations as of February 27, 2026. MNRE has also clarified that force majeure will cover only those instances of non-performance that are directly attributable to disruptions caused by the prevailing West Asia situation and will not absolve a party from other contractual obligations. All contractual obligations will revive upon completion of the approved extension period.
MNRE has accordingly advised Renewable Energy Implementing Agencies (REIAs), including the Solar Energy Corporation of India (SECI), NTPC, NHPC and SJVN, to take the Ministry of Finance’s April 29 memorandum into consideration while dealing with requests from renewable power developers seeking extensions due to delays linked to the West Asia situation. The advisory also covers the Power, Energy and Renewable Energy departments of state and Union Territory governments and organisations and agencies functioning under them.
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