New solar projects in next 5 months likely to get a time extension

The Ministry of New and Renewable Energy (MNRE) has authorised the Dispute Resolution Committee to check if further time extension can be provided for solar plants listed to be launched in the following five months until the Basic Customs Duty (BCD) comes into power starting April 2022.

The Ministry has ordered the Dispute Resolution Committee to make suggestions on a case-by-case basis.

MNRE got representations from developers regarding disruptions in the supply of imported solar modules. They had asked for an extension of the launching timelines for projects and the delay of the BCD imposition.

The Ministry noted that usually, developers acquire solar modules in the last few months closer to the project launch deadlines. So only those plants that would be launched in the following five to six months were expected to be influenced by the supply chain disruption. The Dispute Resolution Committee would see into the matter and bring in suggestions depending on the cases.

In December 2019, MNRE had corrected the order related to the Dispute Resolution Mechanism to solve conflicts between solar, wind developers, and the Solar Energy Corporation of India (SECI), NTPC, or NHPC. Earlier in September 2019, had issued the blueprint for the dispute resolution committee.

According to the present arrangement, the renewable energy developer first addresses the renewable energy executing agency to seek relief. In case the developer is not happy with the decision of the implementing agency, it has the option of approaching the Dispute Resolution Committee by listing an appeal within 21 days.

The developer is required to pay an amount similar to 1% of the influence of the dispute, subject to a minimum of Rs 100,000 and a maximum of Rs 5 million.

According to the new notification, the Ministry has empowered the Dispute Resolution Committee to bring in the cases directly without waiting for the decision of NTPC, SECI or NHPC. The project developers can apply to the committee within a month. Such plans will just have to pay Rs 100,000.

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