PM KUSUM: Govt extends deadline to complete solar projects

01 Sep 2021 CW Team

The project completion extension was already approved due to the Covid-19 pandemic delays.

MNRE said that according to the project guidelines, the last date to complete the grid-connected solar projects is one year from the date of issue of the letter of award (LoA) to the farmers or developer.

MNRE saw the challenges faced by the farmers and developers to complete the project on time, and due to the Covid-19 pandemic, the deadline was extended by more than seven months.

Under the component-A of the project underway in some states against the LoA's issued in FY20-21. But the project completion will take over 12 months due to the Covid-19 pandemic and shortage of finance.

Under component-A, renewable energy power plants of 500 kW to 2 MW capacity can be installed by a farmer, group of farmers, or panchayats on barren land.

To provide more relief to renewable energy developers during the second wave of the Covid-19 pandemic, MNRE issued a 75 days extension in June for projects commissioned between April and June 2021.

After the deadline extension, the immediate milestone of the project will also be extended. The developers should pass the extension benefit to the stakeholders and further to the engineers, procurement, contractors, suppliers, and original manufacturer, the Ministry said.

MNRE has also issued a notification that renewable projects commissioned on or after 1 April 2021 can claim an extension due to the pandemic. But the developers should not use the extension as termination of the power purchase agreement (PPA), project cost increase, or upward revision in tariff.

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Also read: PM KUSUM: Madhya Pradesh floats tender for 270 MW solar projects

Also read: PM Kusum: MPUVNL floats tenders for 225 MW solar projects

The Ministry of New and Renewable Energy (MNRE) has extended the last date of completing the grid-connected solar projects under component-A of the Pradhan Mantri Kisan Urja Suraksha evam Utthaan Mahabhiyan (PM KUSUM) scheme till 31 March 2022. The project completion extension was already approved due to the Covid-19 pandemic delays. MNRE said that according to the project guidelines, the last date to complete the grid-connected solar projects is one year from the date of issue of the letter of award (LoA) to the farmers or developer. MNRE saw the challenges faced by the farmers and developers to complete the project on time, and due to the Covid-19 pandemic, the deadline was extended by more than seven months. Under the component-A of the project underway in some states against the LoA's issued in FY20-21. But the project completion will take over 12 months due to the Covid-19 pandemic and shortage of finance. Under component-A, renewable energy power plants of 500 kW to 2 MW capacity can be installed by a farmer, group of farmers, or panchayats on barren land. To provide more relief to renewable energy developers during the second wave of the Covid-19 pandemic, MNRE issued a 75 days extension in June for projects commissioned between April and June 2021. After the deadline extension, the immediate milestone of the project will also be extended. The developers should pass the extension benefit to the stakeholders and further to the engineers, procurement, contractors, suppliers, and original manufacturer, the Ministry said. MNRE has also issued a notification that renewable projects commissioned on or after 1 April 2021 can claim an extension due to the pandemic. But the developers should not use the extension as termination of the power purchase agreement (PPA), project cost increase, or upward revision in tariff. Image Source Also read: PM KUSUM: Madhya Pradesh floats tender for 270 MW solar projects Also read: PM Kusum: MPUVNL floats tenders for 225 MW solar projects

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