The Ministry of New and Renewable Energy (MNRE), which has set an ambitious target of increasing the non fossil capacity addition to 500 GW by 2030 from the present level of 172.5 GW, has taken a key decision to establish a Dispute Resolution Mechanism (DRM) to consider the unforeseen disputes between Renewable Energy Power Developers/ EPC Contractors and SECI/ NTPC/ NHPC/ SJVN/ any other Renewable Energy Implementing Agency (REIA) (designated by MNRE), beyond contractual agreements. MNRE in its order issued on June 7 said that a three member DRC will be set up, with the approval of the Minister of New and Renewable Energy (NRE) consisting of eminent persons of impeccable integrity. The upper age limit for the DRC Members shall be 70 years. The Committee Members of DRC shall be chosen from the eminent persons, located in NCR of Delhi so as to avoid expenditure on Air Travel & accommodation.
– DRC will comprise eminent persons of impeccable integrity with upper age limit of the members to to 70 years- MNRE’s decision comes when it is pursuing an ambitious target of increasing the non fossil capacity addition to 500 GW by 2030 from the present level of 172.5 GW
The selection of DRC Members would be made in such a manner that there is no conflict of interest involved. The mechanism of DRC will be applicable for all renewable energy (RE) Schemes/ Programmes/ Projects being implemented through/ by REIA. This mechanism shall also be applicable for contractual agreements between REIA and the EPC Contractor, executing RE Power Project owned by REIA, provided REIA undertakes to abide by the decision coming out of this mechanism.
In case of all disputes, whether covered by PPA / EPC Contract/ Agreement or not, the application shall have to be made first to the REIA. REIA would pass speaking orders on such requests, with the objective being to give a just solution to the RE Power Developers/ EPC Contractors with a sense of justice and fair play, even in situations not covered by PPA / EPC Contract/ Agreement, so that the aim for setting up of renewable projects are achieved. If the applicant party is not satisfied with the orders of REIA, then it can appeal to the DRC.
The DRC will consider all kinds of cases of appeal against the decisions given by the REIA on disputes. It will consider all requests for extension of time due to recognized ‘Force Majeure’ events like flood, earthquake, delay in handing over of land by Solar Park Developers, delay in connectivity will be dealt strictly as per Contractual Agreements, where applicable.
If the application is made within the time limit, the request will be examined and the final decision given to RE Power Developers/ EPC Contractors, within twenty-one (21) days by the REIA from the date of application. No separate extension of time shall be granted for overlapping periods of effect as a result of two or more causes. If the RE Power Developers/ EPC Contractors is not satisfied with the decision of the REIA, then it may appeal to the Dispute Resolution Committee (DRC), within 21 days of REIA’s Order.
All requests for Extension of Time not covered under the terms of the contract: All cases involving unforeseen issues/ circumstances not covered under Contractual Agreements like cases where the site is to be procured by the Developer/ EPC Contractor but there is a delay in land allotment due to policy change or registration by the Government, delays in grant of proposed connectivity due to stay Orders of Hon’ble Court, etc., will be placed before the REIA, within seven days of the issue/ circumstance arising on the first occasion. The final decision shall be given to RE Power Developers/ EPC Contractors within twenty-one (21) days by the REIA from the date of application. No separate extension of time shall be granted for overlapping periods of effect as a result of two or more causes. If the RE Power Developers/ EPC Contractors is not satisfied with the decision of the REIA, then it may appeal to the Dispute Resolution Committee (DRC), within 21 days of REIA’s Order.
DRC will also consider aII disputes other than those pertaining to ‘Extension of Time’ between REIA and RE Power Developers/ EPC Contractors.
The recommendations of the DRC along with MNRE’s observations will be placed before the Minister of New and Renewable Energy for a final decision. The Ministry shall examine and put up such recommendations to the Minister of NRE with the comments of the Integrated Finance Division (IFD), within twenty one (21) days of receipt of recommendations from the DRC.
