MNRE Issues Amendments for its Dispute Resolution Mechanism

The Ministry of New and Renewable Energy (MNRE) has issued amendments to the guideline for the operation of its Dispute Resolution Mechanism to consider the unforeseen disputes between solar and wind power developers and SECl/ NTPC/ NHPC, beyond their contractual agreements.

A few key amendments made by the ministry:

1. The DRC will consider all kinds of cases of appeal against decisions given by SECl/NTPC/NHPC on disputes, as follows:

• All requests for extension of time due to recognised ‘Force Majeure’ events like flood, earthquake, delay in handing over of land by Solar Park Developers, delay in connectivity, etc. will be dealt strictly as per Contractual Agreements, where applicable. In all such cases, the solar power developers/ wind power developers shall make an application to SECl/NTPC/ NHPC for grant of Extension of Time (EoT) within the time specified in the Contractual Agreement. If there is no time limit prescribed in the PPA for making such an application, then the application must be made within seven days of the cause of dispute taking place on the first occasion. If the application is not made within the time limit prescribed, it shall be summarily rejected by SECl/NTPC/NHPC. If the application is made within the time limit, the request will be examined and a final decision given to the solar power developer/ wind power developer within 21 days by SEC/NTPC/NHPC from the date of application. No separate extension of time shall be granted for overlapping periods of effect as a result of two or more causes. If the developer is not satisfied with the decision of SECI/NTPC/NHPC, then it may appeal to the Dispute Resolution Committee (DRC), within 21 days of SECI//NTPC/NHPC’s order.
• All requests of EoT not covered under the terms of the contract: All cases involving unforeseen issues/ circumstances not covered under Contractual Agreements like cases where the site is to be procured by the developer but there is a delay in land allotment due to policy change or registration by the Government, delays in grant of proposed connectivity due to court stays, etc., will be placed before SEC/INTPC/NHPC within seven days of the issue/ circumstance arising on the first occasion. The final decision shall be given to the solar power developer/ wind power developer within twenty-one (21) days by SECl/NTPC/NHPC from the date of application. No separate extension of time shall be granted for overlapping periods of effect as a result of two or more causes. If the developer is not satisfied with the decision of SECl/NTPC/NHPC, then it may appeal to the Dispute Resolution Committee (DRC), within 21 days of SEC/NTPC/NHPC’s order.

The key takeaway from the amendment is that NHPC has now been formally included in all the key provisions of the DRM and DRC regulations. MNRE Dispute Resolution Mechanism

For more information click here.