Govt gives 75-day extension to renewable projects under construction

01 Jul 2021 CW Team

MNRE issued a notification last month that says renewable energy projects with commissioning dates on or after April 1, 2021, could claim extension owing to the second surge of the Covid-19 pandemic.

However, MNRE had cautioned the developers that the extension time should not be used as a ground for the termination of the power purchase agreement or claiming any increase in the project cost, including upward revision of the tariff or interest during construction.

Additionally, the Ministry said that the intermediate milestones of the project would also be extended according to the leeway allowed once the project was granted an extension.

The developer must pass on the benefits of the extended deadline to other stakeholders down the value chain, including engineering, procurement, construction contractors, original equipment manufacturers and material and equipment suppliers.

During the Covid-19 outbreak and the subsequent lockdown last year, the Ministry issued a notification stating that all under-development renewable projects would be given an extension of five months and the extension applied from March 25, 2020, to August 24, 2020.

The Ministry of Power (MoP) recently granted an extension of three months to all interstate transmission projects under construction, with the scheduled commercial operation date (SCOD) falling after April 1, 2021, hit by the resurgence of the Covid-19 pandemic.

The central transmission utility, which will provide the commencement date of long-term access to the generator, will also be extended by three months based on the completion of the transmission line whose SCOD was extended by three months.

Image Source

Also read: GERC nods amendments sought by GUVNL for power procurement by discoms

Also read: SECI pays Rs 491 cr to solar, wind developers for power purchase in April

The Ministry of New and Renewable Energy (MNRE) granted an extension of two and half months for projects with commissioning dates between April 1 and June 15, 2021, in its latest updates in a move to provide relief to renewable developers amid the second wave of the Covid-19 pandemic. MNRE issued a notification last month that says renewable energy projects with commissioning dates on or after April 1, 2021, could claim extension owing to the second surge of the Covid-19 pandemic. However, MNRE had cautioned the developers that the extension time should not be used as a ground for the termination of the power purchase agreement or claiming any increase in the project cost, including upward revision of the tariff or interest during construction. Additionally, the Ministry said that the intermediate milestones of the project would also be extended according to the leeway allowed once the project was granted an extension. The developer must pass on the benefits of the extended deadline to other stakeholders down the value chain, including engineering, procurement, construction contractors, original equipment manufacturers and material and equipment suppliers. During the Covid-19 outbreak and the subsequent lockdown last year, the Ministry issued a notification stating that all under-development renewable projects would be given an extension of five months and the extension applied from March 25, 2020, to August 24, 2020. The Ministry of Power (MoP) recently granted an extension of three months to all interstate transmission projects under construction, with the scheduled commercial operation date (SCOD) falling after April 1, 2021, hit by the resurgence of the Covid-19 pandemic. The central transmission utility, which will provide the commencement date of long-term access to the generator, will also be extended by three months based on the completion of the transmission line whose SCOD was extended by three months. Image Source Also read: GERC nods amendments sought by GUVNL for power procurement by discoms Also read: SECI pays Rs 491 cr to solar, wind developers for power purchase in April

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