In a very apt move, the Union Ministry of New & Renewable Energy (MNRE) in a recent circular said that all renewable energy implementing agencies under MNRE will treat the lockdown due to the COVID-19 pandemic as “force majeure”.
Accordingly, all renewable energy (RE) projects under implementation as on the date of lockdown, which is March 25, 2020, through RE implementing agencies designated by MNRE, or under various schemes of MNRE, will be given a time extension of five months, from March 25, 2020 up to August 24, 2020. This extension, if invoked by RE developers, will be given without case-to-case examination and no documents or evidence will be asked for such extension.
RE project developers may also pass on the benefit by way of granting similar time-extensions to other stakeholders down the value chain, says MNRE.
The ministry further said that the timelines for intermediate milestones of a project may also be extended within the extended time provided for commissioning.
The ministry has added that developers of RE projects may also pass on the benefit of such time-extension, by way of granting similar time-extensions, to other stakeholders down the value chain like EPC contractors, material, equipment suppliers, OEMs, etc.
Commenting on the relaxation, Pinaki Bhattacharyya, Co-founder & CEO, Amp Energy India, said, “This is a positive move by MNRE and showcases their intent of helping the sector tide over these tough times by providing the developers sufficient extension timelines. Having said that, the government should not impose more trade barriers such as basic customs duty, after imposing safeguard duty. The power costs have already gone up and any additional duty will further increase the cost of power for consumers and this would not a great move given the current situation.”
The circular also notes that state renewable energy departments (including agencies under power/energy departments of states, but dealing in renewable energy) may also treat lockdown due to COVID-19, as force majeure and may consider granting appropriate time extension on account of such lockdown.
Acknowledging that MNRE has made note of various representations made by developers, Ritu Lal, Head — Institutional Relations, Amplus Solar, noted, “Developers had been making several representations to the MNRE on the matter for the last few months. We thank the ministry for taking note of our concerns on this issue and allowing us this much required extension.”
Featured photograph is illustrative.
