New Delhi: The Ministry of New and Renewable Energy (MNRE) has advised renewable energy implementing agencies (REIAs) and state governments that they may consider granting extensions of up to four months to renewable projects delayed by disruptions arising from the West Asia situation.
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The advisory, dated August 21, is addressed to the MDs and CMDs of Solar Energy Corporation of India Limited (SECI), NTPC Limited, NHPC Limited and SJVN Limited, and to power, energy and renewable energy secretaries of state and union territory governments.
The relief is tied to the project's contracted deadline. The advisory states: "In line with Force Majeure provisions in the Power Purchase Agreements (PPAs) and as per the contractual provisions and procedure for seeking relief under Force Majeure provisions in the PPA, the REIAs/ the concerned RE power procuring agencies/ entities, may consider granting time-extension in Scheduled Commencement of Supply Date (SCSD)/ Scheduled Commissioning Date (SCD) for such renewable energy (RE) power projects whose SCSD/SCD or extended SCSD/SCD falls on or after 28th February 2026, for a period of upto four months."
The advisory records that MNRE received representations seeking a blanket extension of project timelines for affected renewable projects.
Those representations cited a Ministry of Housing and Urban Affairs (MoHUA) letter of July 31 to the chairpersons of all Real Estate Regulatory Authorities. Under that letter, regulatory authorities were advised that they may issue orders or directions extending registration and completion timelines for registered real estate projects whose completion date, revised completion date or extended completion date falls on or after February 28, for four months.
MNRE's advisory does not grant a blanket extension. It routes requests through the force majeure provisions of individual PPAs and leaves the decision with the procuring agency.
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The ministry set out three findings in the advisory. First, the Standard Bidding Guidelines for procurement of renewable power covering solar, wind, hybrid and FDRE, issued under Section 63 of the Electricity Act, 2003, require PPAs to contain provisions on force majeure definitions, exclusions, applicability and available relief as per industry standards.
Second, the advisory states: "Generally, the Force Majeure clause in PPAs, includes "war" as a Force Majeure event."
Third, it notes that the Department of Expenditure, Ministry of Finance, has clarified that the West Asia situation should be treated as war, and has provided for a time extension of up to four months on that account.
The Department of Expenditure issued a memo on April 29, addressed to secretaries of all Central ministries and departments. The OM states: "While the term 'War" is defined as an event triggering Force Majeure as stated above, for ample clarity it is to reiterate that the ongoing West Asia situation should be treated as war."
On the extension itself, the OM provides that the completion date for contractual obligations falling on or after February 28 "may be extended for a period of not less than two months and not more than four months without imposition of any cost or penalty on the contractor." The period within that band is to be decided by the procuring entity on a case-to-case basis.
Two conditions limit the relief. The OM states that invocation of force majeure "shall be considered valid only where the parties to the contract were not in default of their contractual obligations as on 27th February 2026". It adds that invocation "does not absolve all non-performances of a party, but only such non-performances as are directly attributable to disruptions caused by the prevailing West Asia situation".
The OM also states that all contractual obligations revive on completion of the extension period.
The two documents describe the extension band differently. The Finance Ministry OM sets a floor of two months and a ceiling of four. MNRE's advisory refers to a period of up to four months.
MNRE has marked the advisory to the Secretary, Ministry of Power, with a request to issue orders for similar relief to affected renewable developers to the extent of force majeure declared. The advisory specifies two heads: "Providing/Extending GNA/Connectivity without any penalty" and "Continuation of ISTS waiver/concession for the extended project period."
MNRE had issued an earlier letter under the same number on July 6. That letter advised REIAs and state agencies that while dealing with developer requests for time extension citing West Asia disruptions, they "are hereby advised to duly take into consideration, the aforesaid O.M. No. 1/3/2026-PPD dated 29th April 2026 issued by Department of Expenditure, Ministry of Finance, and decide on such requests accordingly".
The August 21 advisory records that further representations were received after that letter was issued.
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