MNRE Requests State Governments To Consider Its DRC Model for Intra State Disputes

The Ministry of New & Renewable Energy (MNRE) has set up a Dispute Resolution Committee (DRC) consisting of eminent persons to deal with disputes between MNRE’s Renewable Energy Implementing Agencies (REIAs) like SECI, NTPC, NHPC and Renewable Energy developers.

The DRC will be focused on disputes related to requests for ‘Extension of Time’ due to recognized Force Majeure’ events, all requests of ‘Extension of Time’ not covered under the terms of contract and disputes other than those pertaining to ‘Extension of Time’ between MNRE’s REIAs and RE developers.

The committee’ submits its recommendations to the Ministry of New & Renewable Energy (MNRE), which are examined by MNRE and the same, along with MNRE’s observations thereupon, are placed before Hon’ble Minister (NRE) for final decision.

The mechanism of DRC has been successful in expeditious resolution of disputes and based on the recommendations of DRC, this Ministry has successfully decided upon 27 cases so far.

State Governments are requested to consider setting up similar mechanism for dispute resolution in respect of renewable energy projects directly bid out by them.

This is being issued with the approval of Hon’ble Minister (NRE & Power).

In 2019 MNRE had set up Setting up of a Dispute Resolution Mechanism to consider the unforeseen disputes between solar/ wind power developers and SECI/ NTPC, beyond contractual agreements.