Solar developers pitch for additional 3 months extension in commissioning date

With the second wave of the coronavirus pandemic spreading across the country, solar industry lobby group Solar Power Developers Association (SPDA) has requested for an additional three-month extension in the project commissioning date to the ministry of new and renewable energy (MNRE).

This is in addition to the five months extension granted by MNRE. Power purchase agreements signed by developers specify strict commissioning deadlines and a failure to meet them can result in fines and encashment of their bank guarantees.

“Govt. had taken the problems into cognizance and provided relief in blanket extension for five months through an O.M. dated August 13, 2020. The extension was granted basis assumption there will be normalization in equipment supply, logistics, labour supply, the functioning of Government offices, etc,” SPDA said in a statement on Saturday.

“The second wave of the COVID‐19 pandemic has been advancing swiftly, with a big spike registered across Maharashtra, Karnataka, Tamil Nadu, Madhya Pradesh, Uttar Pradesh, Punjab, Rajasthan, etc. To arrest the virus’s spread, various State Government and local administration have announced vaccination drive and local restrictions affecting the movement of personnel, labour, and delay on multiple approvals from State authorities, etc. Due to the second outbreak, solar power developers are witnessing scarcity of workforce at sites again, putting the project construction to hold again,” the statement added.

According to the ministry of health and family welfare, a total of 1,341 deaths were reported in the last 24 hours, with ten states accounting for 85.83% of the new deaths.