COVID-19 Update: MNRE Issues Clarification On Time Extension for RE Projects

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The Ministry of New and Renewable Energy (MNRE), nodal Ministry of the Government of India has recently passed an order on Time-Extension for Renewable Energy (RE) Projects considering disruption due to COVID-19 Lockdown.

On order dated 17.04.2020 MNRE had directed all RE implementing agencies of the MNRE to treat lockdown due to COVID-19, as Force Majeure and that they may grant an extension of time for RE projects equivalent to the period of lockdown and additional 30 days for normalization after the end of such lockdown. States and UTs were also requested to treat Lockdown as Force Majeure and to consider granting appropriate time extension on account of such lockdown.

MNRE clarifies that In line with the Ministry of Home Affairs on orders dated 15th April, 17th May, and 30th May 2020, the period of lockdown is to be treated from 25th March 2020 to 31st May 2020. 

 All projects through RE Implementing agencies designated by the MNRE and the projects under various schemes of the MNRE are covered under the said OM.

The timelines for intermediate milestones of a project may also be extended within the extended time, the ministry added.

The Developers of the projects are directed to 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 following order was passed with the approval of the Ministry of NRE & Power.

MNRE earlier on 20.03.2020, issued directions to SECI, NTPC, and Addl. 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 coronavirus in China or any other country, as Force Majeure and that they may grant a suitable extension of time for projects, on account of coronavirus, based on evidence/documents produced by developers in support of their respective claims of such disruption of the supply chains due to spread of coronavirus in China or any other country.

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