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MNRE Issues Order On Partial Release of Bank Guarantees Of RE Contracts

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The Ministry of New & Renewable Energy (MNRE) issued notification on partial release of Performance Security/ Bank Guarantees to the extent contracts are partially completed.

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In June, the Ministry passed an order on force majeure clause and on performance security a doubt was raised that  whether central public center undertakings are covered under the term Government agencies. The Ministry cleared that CPSUs are included in force majeure clauses and on performance security.

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.

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MNRE had, 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 suitable extension of time for projects, on account of coronavirus, based on evidences / 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.

To know more about the order refer to the document below:

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