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COVID-19: Solar power projects not to be penalised for failing to meet deadlines

Our Bureau New Delhi | Updated on March 21, 2020 Published on March 21, 2020

Force Majeure Clause to be invoked for projects hit by supply chain disruptions caused by coronavirus outbreak: Ministry

Solar energy projects affected by supply disruptions on account of the COVID-19 outbreak will not be penalised for failing to meet deadlines.

"Disruption of the supply chains due to spread of coronavirus in China or any other country should be considered as a case of natural calamity and Force Majeure Clause (FMC) may be invoked, wherever considered appropriate, following due procedure," an order from the Ministry of New and Renewable Energy said.

"All Renewable Energy implementing agencies of the Ministry of New & Renewable Energy (MNRE) are, hereby, directed to treat any delay on account of disruption of the supply chains due to spread of coronavirus in China or any other country, as Force Majeure. The Renewable Energy implementing agencies may grant suitable extension of time for projects, on account of coronavirus, based on evidences/ documents produced by developers in support of their claims of such disruption of the supply chains due to spread of coronavirus in China or any other country," the order said.

All project developers that claim disruption and seek more time to complete projects will have to provide documentary evidence(s) in support of their claim while making formal applications to the SECI, NTPC and other implementing agencies, the statement added.

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Published on March 21, 2020
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