Mar 31, 2022

Dispute Resolution Mechanism in States for Renewable Energy Projects

The Ministry of New & Renewable Energy (‘MNRE’) has set up Dispute Resolution Committee (‘DRC’) to deal with disputes between MNRE’s renewable energy implementing agencies and renewable energy developers to resolve disputes between them in relation to: (i) requests for extension of time due to force majeure; (ii) requests for extension of time not covered under the terms of the contract; and (iii) disputes other than those pertaining to extension of time. Encouraged by the efficacy of DRC in resolution of many disputes, MNRE has now, by its letter dated March 3, 2022, requested the various State Governments to set up dispute resolution mechanism for disputes, in relation to renewable energy projects bid out by the State distribution licensees, in line with the DRC set up by MNRE. If such a mechanism is implemented by various State Governments, then it is likely to provide speedy resolution of disputes between renewable power off-takers and renewable power producers – which is always much desired by the renewable power producers.




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