Renewable Energy Supply Chain Disruptions to be Treated as Force Majeure

MNRE has directed its implementing agencies to treat delay on account of disruption of the supply chains due to the spread of coronavirus as Force Majeure.

The Ministry of New and Renewable Energy (MNRE) has announced that all Renewable Energy implementing agencies of the MNRE have been directed to treat delay on account of disruption of the supply chains due to the spread of coronavirus in China or any other country, as Force Majeure.

In its notice, the ministry has revealed that the by way of various representations as well as a discussion during various meetings with Renewable Energy (RE) Developers and RE associations, has been receiving requests for considering disruption of the supply chains due to spread of coronavirus in China or any other country as Force Majeure (FM) event for grant of appropriate time-extension in Scheduled Commissioning Date of RE projects as per Force Majeure Clause in concerned contractual agreements.

Thus after carefully examining all request and provisions under the new order (O.M. No. 18/4/2020-PPD dated February 19, 2020) from the Ministry of Finance regarding disruptions of supply chains and force majeure, the ministry had directed its renewable energy implementing agencies to grant a suitable extension of time for projects, on account of coronavirus, based on evidence/documents produced by developers in support of their respective claims of such disruption of the supply chains due to spread of coronavirus in China or any other country.

Further, all project developers claiming aforesaid disruption and desirous of time extensions, shall make, a formal application to SECT/ NTPC/ other implementing agencies, giving all documentary evidence(s) in support of their claim. SECT/NTPC/ Implementing agencies shall examine the claim objectively and grant appropriate Extension of Time (EoT) based on facts. While considering the requests for grant of extension of time on account of disruption of the supply chains due to spread of coronavirus, SECl/NTPC/any other implementing agency may fully satisfy itself that the claimants were actually affected due to disruption of the supply chains due to spread of coronavirus in the period for which extension of time has been claimed.

The implementing agencies shall also ensure that no double relief is granted due to overlapping periods of time extension granted for reasons eligible for such relief.

The notice also added that the State Renewable Energy Departments (including agencies under Power/ Energy Departments of States, but dealing in renewable energy) are also requested to treat delay on account of disruption of the supply chains due to spread of coronavirus in China or any other country, as Force Majeure and issue their own instructions on the subject.

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