Centre grants 4-month extension to renewable energy projects hit by West Asia crisis

The Ministry of New and Renewable Energy has issued an advisory to state governments and power sector PSUs to grant up to four months’ extension to renewable energy projects affected by disruptions due to the West Asia situation under the Force Majeure provisions. Generally, the force majeure clause in PPAs includes "war" as a force majeure event.

The Department of Expenditure, Ministry of Finance, in its order dated 29th April 2026, has clarified that the West Asia situation should be treated as war and provided for time-extension on this account of up to four months, the advisory states. The relief applies to projects whose scheduled supply or commissioning dates (including past extensions) fall on or after February 28, states the advisory issued on August 21. Renewable energy implementing agencies (REIAs), including Solar Energy Corporation of India (SECI), NTPC, NHPC and SJVN, as well as power, energy and renewable energy departments of state and union territory governments, may grant extensions in the “Scheduled Commencement of Supply Date (SCSD)” or “Scheduled Commissioning Date (SCD)” for affected projects.

The extension can be granted under the force majeure provisions contained in the power purchase agreements (PPAs), with the concerned agencies following the applicable contractual procedure. While dealing with requests from renewable power developers seeking time extension for implementation of their renewable power projects, citing delay in implementation of renewable power projects due to disruptions on account of West Asia situation, the Renewable Energy Implementing Agencies (REIAs) and State/UT Governments and Agencies thereunder, are hereby advised to duly take into consideration, the order dated 29th April 2026 issued by Department of Expenditure, Ministry of Finance, and decide on such requests accordingly, it further stated. Subsequently, further representations have been received in MNRE, seeking blanket extension of project timelines for affected Renewable Energy projects, citing advisory issued by the Ministry of Housing and Urban Affairs (MoHUA) dated July 31, 2026 to Chairpersons of all Real Estate Regulatory Authorities, wherein Regulatory Authorities have been advised that they may issue suitable orders or directions for grant of extension of registration and corresponding completion timelines of registered real estate projects whose completion date, revised completion date or extended completion date falls on or after 28 February 2026, for a period of four months, the advisory said.

The matter has been examined in MNRE and it has been decided that the Standard Bidding Guidelines for procurement of renewable power (solar, wind, hybrid, FDRE), issued under Section 63 of the Electricity Act, 2003, provide that Power Purchase Agreement (PPA) shall contain provisions with regard to Force Majeure definitions, exclusions, applicability and available relief on account of force majeure as per the Industry Standards, the advisory said.

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