MNRE to Shortly Release Relief Guidelines for Solar Projects Deferred by Coronavirus

The move is projected to be in line with the previous clarification of the Ministry of Finance (Department of Expenditure Procurement Policy Division) which stated that coronavirus will be covered in the force majeure clause (FMC)

February 24, 2020. By News Bureau

With an aim to save renewable energy developers from projected delays in project commissioning on the back of lack of supply from China due to spread of coronavirus, the Ministry of New and Renewable Energy (MNRE) will deliver extra time for such developers.

The move is projected to be in line with the previous clarification of the Ministry of Finance (Department of Expenditure Procurement Policy Division) which stated that coronavirus will be covered in the force majeure clause (FMC). So, MNRE will soon issue a separate notification allowing developers facing delays extra time to commission their project without inviting any penalties, says report.

In force majeure clause, if there are extraordinary events like those beyond human control such as wars, riots, crimes, or natural calamities, then this clause can free both the parties from contractual liability from fulfilling their obligations under the contract.

Renewable energy projects, especially solar power projects, have been badly impacted due to spread of coronavirus in China as it has completely stopped the supply of solar modules and cells. Currently, approx. 80 percent of solar modules are sourced from China.

This has put developers at the risk of paying penalty to state discoms for any delay in commissioning of projects as per the terms of power purchase agreement (PPA).

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