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The Ministry of New and Renewable Energy (MNRE) has issued an extension for installation of grid-connected solar power plants under Component-A of PM-Kusum Scheme.
As per PM-Kusum scheme guidelines, under component-A for installation of grid connected solar power plant, project completion timeline is 12 months from issuance of Letter of Award (LoA) to farmer/developer. On account of challenges faced due to Covid-19 first and second wave, Ministry has granted extension of 7.5 months to all RE Projects.
While installations under component-A have started in few states against the letter of awards issued in 2020-21, in mosst of the cases it is likely to take more time, beyond the 12 months’ timeline due to Covid-19 and constraints in extending financing facility to set up the projects. In view of the same, it has been decided to grant a further extension till 31.3.2022 for all such projects where completion timeline including with extension already given for Covid-19, is before 31.3.2022 says the notice.
Earlier this year, MNRE had issued a notification that renewable energy projects with commissioning dates on or after April 1, 2021, could claim extension on account of the second surge of the pandemic. It had, however, cautioned developers that the time extension should not be used as a ground for the termination of the power purchase agreement or claiming any increase in project cost, interest, or upward revision in tariff.