Business
Renewable energy project deadlines extended up to four months due to West Asia disruptions
This is in line with the department of expenditure’s note saying disruptions directly or consequentially affecting contractual obligations could qualify as force majeure. For contracts where obligations were due for completion on or after February 28, 2026, the agencies such as NTPC, NHPC, SJVN, and Solar Energy Corporation may allow extensions by up to four months without imposing costs or penalties on contractors.
However, the relief will apply only where the contractor was not already in default as of February 27, 2026.
The force majeure provision will cover only delays directly attributable to disruptions caused by the West Asia situation and will not absolve parties of other contractual non-performance.
The move comes as renewable energy projects face potential disruptions to the execution of contracts for goods, services and construction.
The renewable energy ministry has asked implementing agencies and state authorities to take the finance ministry’s April 29 order into account while deciding requests for extensions.
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