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New Delhi
The Ministry of New & Renewable Energy (MNRE) has set up a three-member committee for resolving unforeseen disputes between solar and wind power developers, EPC contractors and Renewable Energy Implementing Agencies (REIAs) such as NTPC, SECI, SJVN, etc.
“Setting up of a dispute resolution mechanism to consider the unforeseen disputes between renewable energy power developers/ EPC contractors and SECI/ NTPC/ NHPC/ SJVN/ any other Renewable Energy Implementing Agency (REIA), designated by MNRE,” the Ministry said on Monday.
In June last year, the Ministry said that it has revised the dispute settlement mechanism to include the creation of a dispute resolution committee (DRC) that will settle disputes between developers and REIAs.
Dispute resolution committee
The three-member committee includes former Health Secretary Rajesh Bhushan, former Telecom Secretary M F Farooqui and former Tripura Chief Secretary Kumar Alok.
The upper age limit for DRC members shall be 70 years. The committee members shall be chosen from eminent persons, located in NCR of Delhi so as to avoid expenditure on air travel and accommodation. The selection of DRC members would be made in such a manner that there is no conflict of interest involved.
The mechanism of DRC will be applicable to all the RE schemes, programmes and projects being implemented through REIAs. It will also be applicable for contractual agreements between REIAs and EPC contractors executing RE power projects owned by a REIA, provided the REIA undertakes to abide by the decision coming out of this mechanism, it added.
The DRC will meet at least once a week if there are cases or applications pending before it for resolution.
Resolution mechanism
The order mandates that in all disputes, including those covered by PPAs, EPC contracts or agreements, the application shall have to be first made to the REIA, which will pass speaking orders with the objective to give a just solution with a sense of justice and fair play, even in situations not covered by PPAs or EPC contracts or agreement, so that the aim for setting up of renewable projects are achieved.
If the applicant party is not satisfied with the orders of REIA, then it can appeal to the DRC, which will consider all kinds of cases of appeal against the decisions given by the REIAs.
The recommendations of the DRC along with the MNRE’s observations will be placed before the Minister (NRE) for a final decision. The Ministry shall examine and put up such recommendations to the Minister with the comments of the Integrated Finance Division (IFD), within 21 days of receipt of recommendations from the DRC.
In cases where the DRC is unable to give their decision within the time frame of 21 days, the MNRE can provide an additional 14 days’ time, within which the DRC will have to take a decision.
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