MNRE Asks To Treat Lockdown As Force Majeure

• MNRE has issued an office order allowing for project extensions for renewable energy under its implementing agencies, along with states and UTs impacted due to the pandemic related lockdown
• Projects can be granted extensions equivalent to the period of the lockdown, from March 25, 2020 to May 31, 2020 and an additional 30 days
• Relaxations can be passed down to the entire supply chain and will also be applicable for intermediate timelines of impacted projects

The Indian Ministry of New and Renewable Energy (MNRE) has directed all renewable energy implementing agencies under its aegis as well as states and union territories (UT) to treat COVID-19 related lockdowns as force majeure events. With this, the ministry says the agencies can grant extension to such projects impacted due to the lockdown which will be equivalent to the period of lockdown and an additional 30 days for normalization of the situation.

The period it considers for the lockdown is from March 25, 2020 to May 31, 2020, as per the office order issued. It covers all projects by MNRE designated renewable energy implementing agencies and the projects under various schemes of the ministry.

The order specifies that the intermediate milestones of a renewable energy project may also be extended within the extended time period. It can then be passed down to the entire value chain of the project by developers like the EPC, original equipment manufacturers, and suppliers.

Back in March 2020, the ministry had allowed renewable energy developers to invoke the force majeure clause to deal with project commissioning delay due to the impact of the pandemic.