Centre Gives Four Month Extension To Renewable Energy Projects

The new and renewable energy ministry (MNRE) has advised state governments and power sector PSUs to grant up to four months' extension to renewable projects affected by supply disruptions from the West Asia situation. The advisory of 21 August covers projects whose scheduled supply or commissioning dates, including past extensions, fall on or after 28 February 2026. It asked Renewable Energy Implementing Agencies (REIAs) including the Solar Energy Corporation of India (SECI), NTPC, NHPC and SJVN and state power departments to consider requests for relief.\n\nREIAs and state agencies are permitted to extend the Scheduled Commencement of Supply Date (SCSD) or the Scheduled Commissioning Date (SCD) under force majeure provisions in power purchase agreements provided contractual procedures are followed. The ministry sought coordination with the power ministry and the Central Transmission Utility of India (CTUIL) to avoid imposing connectivity and transmission penalties during the extended period. The measure aims to relieve developers facing delays due to disrupted supply chains and higher raw material prices.\n\nIndia has 150 gigawatts (GW) of renewable capacity under construction, highlighting the scale of projects that could be affected. MNRE referred agencies to a finance ministry memorandum of 29 April on force majeure and to its own July note while assessing requests, and it said the West Asia situation has been treated as war for force majeure purposes. The advisory does not prescribe a blanket extension and advises agencies to act in line with PPA terms.\n\nThe ministry did not identify developers or specific projects eligible for extensions and emphasised that relief will depend on individual contractual terms. Developers had sought broader waivers citing a recent housing sector extension for eligible real estate projects, but MNRE directed agencies to apply force majeure rules specific to renewable contracts. The advisory aims to balance temporary regulatory relief with contractual governance and transmission planning.

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