Centre grants 4-month relief to renewable projects hit by war

The ministry of new and renewable energy (MNRE) has issued an advisory granting a four-month extension to the scheduled commissioning dates of renewable energy projects that were due on or after 28 February. The relief applies to projects facing supply-chain disruptions caused by the West Asia war. Developers will be protected from penalties such as bank guarantee encashment, daily extension fees, tariff reductions, or other financial compensation for missing deadlines.

The advisory, dated 21 August, was sent to implementation agencies including Solar Energy Corp. of India, NHPC, NTPC, SJVN, state chief secretaries, the power ministry, the Central Electricity Authority, and the Central Electricity Regulatory Commission. The move follows representations from the industry seeking blanket timeline extensions. In April, the finance ministry had clarified that the West Asia situation qualifies as war under force majeure clauses in power purchase agreements. Developers welcomed the relief but also urged the power ministry and transmission utilities to extend the inter-state transmission system (ISTS) waiver waiver period accordingly.