In a major relief to green energy developers, the government has decided to extend the deadline for completing their projects following disruptions caused by the second wave of the pandemic, said two government officials aware of the development.
This assumes significance given the contracts or power purchase agreements (PPAs) signed by the developers specify strict commissioning deadlines, and a failure to meet them can result in fines and encashment of their bank guarantees.
The decision by the ministry of new and renewable energy (MNRE) to grant extensions to those projects having a scheduled commissioning date (SCD) on or after 1 April 2021 comes against the backdrop of large parts of the country shutting down to contain the spread of covid-19.
