MNRE declares commissioning date extension for RE projects

17 May 2021 CW Team

In its latest notification, MNRE has provided relief to a solar developer amid the raging Covid-19.

The ministry advised developers that the time extension should not be used as a ground for the termination of the power purchase agreement (PPA) or demanding any increase in the project value.

However, MNRE made it clear that the actual quantum of the time extension will be decided in the coming weeks depending on the progress related to the Covid-19.

The ministry explained that on receipt of an application for the time extension, the implementing agency would not initiate any coercive action on the project to recover the penalty on delayed commissioning till the extended period is decided upon.

After the project is given an extension, the intermediate milestones of the project will also be extended according to the leeway granted. The developer should pass on the advantages of the extended deadline to other stakeholders down the value chain, the ministry said.

The previous year's ministry had issued an announcement declaring that all under-development renewable projects would be given an extension of five months from March 25, FY20 to August 24, FY20. The notification also stated no further routine extension from now on.

MNRE explained that the extension provided by implementing agencies on record of the first wave of the Covid-19 will not be more than six months in any circumstance, including the five-month extension provided earlier.

Further, they added that if the implementing agencies felt the need for an extension beyond six months, they should refer for consideration of MNRE with due justification and supporting documents.

Image Source

Also read: Govt offers tax relief to four more foreign funds to push infra investments

Also read: Customs duty on solar imports from April 2022

The Ministry of New and Renewable Energy (MNRE) told the media that renewable energy (RE) projects can claim extension for those having their commissioning dates on or after April 1, 2021, amid the second wave of Covid-19. In its latest notification, MNRE has provided relief to a solar developer amid the raging Covid-19. The ministry advised developers that the time extension should not be used as a ground for the termination of the power purchase agreement (PPA) or demanding any increase in the project value. However, MNRE made it clear that the actual quantum of the time extension will be decided in the coming weeks depending on the progress related to the Covid-19. The ministry explained that on receipt of an application for the time extension, the implementing agency would not initiate any coercive action on the project to recover the penalty on delayed commissioning till the extended period is decided upon. After the project is given an extension, the intermediate milestones of the project will also be extended according to the leeway granted. The developer should pass on the advantages of the extended deadline to other stakeholders down the value chain, the ministry said. The previous year's ministry had issued an announcement declaring that all under-development renewable projects would be given an extension of five months from March 25, FY20 to August 24, FY20. The notification also stated no further routine extension from now on. MNRE explained that the extension provided by implementing agencies on record of the first wave of the Covid-19 will not be more than six months in any circumstance, including the five-month extension provided earlier. Further, they added that if the implementing agencies felt the need for an extension beyond six months, they should refer for consideration of MNRE with due justification and supporting documents. Image SourceAlso read: Govt offers tax relief to four more foreign funds to push infra investments Also read: Customs duty on solar imports from April 2022

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