Centre extends deadline for all renewable energy projects amid nationwide lockdown | Mint
Active Stocks
Wed Feb 28 2024 15:59:21
  1. Tata Motors share price
  2. 957.75 -0.52%
  1. Tata Steel share price
  2. 140.75 -2.36%
  1. HDFC Bank share price
  2. 1,408.15 -0.87%
  1. Power Grid Corporation Of India share price
  2. 279.55 -4.43%
  1. ITC share price
  2. 408.60 -0.62%
Business News/ News / India/  Centre extends deadline for all renewable energy projects amid nationwide lockdown
BackBack

Centre extends deadline for all renewable energy projects amid nationwide lockdown

India is currently under the world’s largest lockdown to stem the spread of the novel coronavirus pandemic

The government’s move shields green energy developers from the risk of penalties for missing deadlinesPremium
The government’s move shields green energy developers from the risk of penalties for missing deadlines

In a relief for India’s green energy sector, the Union government on Thursday extended the project completion deadline for all renewable energy projects, considering the prolonged nationwide lockdown and the time required to reassemble workers. The move shields these developers from the risk of penalties, including fines and encashment of bank guarantees, for missing deadlines. India is currently under the world’s largest lockdown to stem the spread of the novel coronavirus pandemic.

The announcement comes in the backdrop of the government’s earlier decision to consider the disruption of the supply chains due to the spread of the coronavirus in China or any other country under the force majeure clause (FMC).

“All renewable energy projects under implementation will be given extension of time considering period of lock down and time required for remobilisation of work force," new and renewable energy secretary Anand Kumar said in a tweet on Thursday.

The growing pandemic has impacted India’s green energy trajectory. According to the power purchase agreements (PPAs), any delays in project completion timelines attracts penalties. India is running what will become the world’s largest clean energy programme, with an aim of having 175 gigawatts (GW) of clean energy capacity by 2022. By then, it plans to add 100GW of solar capacity, which may need investments of around $80 billion, growing more than three-fold to $250 billion during 2023-30.

Invoking the force majeure clause enables a developer to cite disruption from an unforeseen event—in this case the virus pandemic—to justify the delay.

Unlock a world of Benefits! From insightful newsletters to real-time stock tracking, breaking news and a personalized newsfeed – it's all here, just a click away! Login Now!

ABOUT THE AUTHOR
Utpal Bhaskar
"Utpal Bhaskar leads Mint's policy and economy coverage. He is part of Mint’s launch team, which he joined as a staff writer in 2006. Widely cited by authors and think-tanks, he has reported extensively on the intersection of India’s policy, polity and corporate space.
Catch all the Business News, Market News, Breaking News Events and Latest News Updates on Live Mint. Check all the latest action on Budget 2024 here. Download The Mint News App to get Daily Market Updates.
More Less
Published: 27 Mar 2020, 12:46 AM IST
Next Story footLogo
Recommended For You
Switch to the Mint app for fast and personalized news - Get App