MNRE Urges States To Replicate Its Dispute Resolution Model For Intra State Disputes too

Highlights :

  • The idea seems positive on principle, considering the state of many state regulators that are almost dysfunctional.
  • With states increasingly bidding out projects directly too, such a mechanism will certainly help resolve issues faster.
MNRE Urges States To Replicate Its Dispute Resolution Model For Intra State Disputes too

The Ministry of New and Renewable Energy, (MNRE), in a letter dated March 3 to all relevant power stakeholders across government and at the state level, has expounded on the role of dispute resolution mechanism it has established. The MNRE had set up a disputes resolution committee (DRC) consisting of eminent persons to resolve issues between MNRE’s implementing agencies like SECI, NTPC, NHPC etc and renewable energy developers.

The committee focused on issues related to requests for extension of time due to ‘force majeure’ or otherwise, besides all other issues between these. Set up through an order in June 2019, the MNRE seems sufficiently satisfied with the performance of the DRC to recommend it for all states too now.

With 27 cases settled so far, which involved the DRC placing its recommendations for final approval by the MNRE minister, it seems safe to say that it has helped at least some cases avoid the longer grind through the relevant regulators like CERC or APTEL, for that matter.

With SECI and NTPC providing the secretariat support for the DRC based in the NCR and comprising members from the region only,  (to save on travel and stay costs apparently)  the onus in states would be on state discoms to provide support we imagine.

With only an age limit of 70 years as an elimination condition, the present committee members include P. K. Basu, (former Agriculture Secretary), Rakesh Kacker (former Food Processing Industries Secretary) and M.F. Farooqui (former DOT Secretary/ Heavy Industry Secretary).

The whole push for a DRC had come from solar energy developers who saw it as a way to speed up resolution as well as lower costs of litigation. Power and MNRE Minister R.K. Singh had seen the merit of their demands, and ensured the formation of the present committee finally.

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Prasanna Singh

Prasanna has been a media professional for over 20 years. He is the Group Editor of Saur Energy International

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