MNRE Grants Four-Month Extension to Renewable Energy Projects Hit by West Asia Disruptions

The Ministry of New and Renewable Energy (MNRE) has allowed eligible renewable energy developers to seek extensions of up to four months for projects delayed by disruptions arising from the ongoing geopolitical situation in West Asia.

The relief applies to renewable energy projects whose Scheduled Commissioning Date (SCD) or Scheduled Commencement of Supply Date (SCSD) falls on or after February 28, 2026.

The decision follows representations from developers facing difficulties in sourcing equipment, transporting materials and maintaining construction schedules amid supply-chain and logistics disruptions linked to the regional conflict.

Force Majeure relief for eligible projects

MNRE’s decision follows an earlier memorandum issued by the Department of Expenditure under the Ministry of Finance, which recognized the geopolitical situation in West Asia as a state of war for contractual purposes.

This provides a basis for invoking Force Majeure provisions in government and public-sector contracts wherever the applicable contractual conditions are satisfied.

Under standard Power Purchase Agreements (PPAs), war is generally treated as an extraordinary event beyond the control of the contracting parties. Where such an event prevents a renewable energy developer from meeting contractual obligations, relief may be available subject to the terms of the agreement.

SECI, NTPC, NHPC and SJVN among implementing agencies

MNRE has directed major renewable energy implementing agencies, including Solar Energy Corporation of India (SECI), NTPC, NHPC and SJVN, along with state energy departments, to consider eligible claims.

Power procuring entities may grant extensions of up to four months without financial penalties or liquidated damages, provided the delay is directly attributable to the West Asia-related disruptions.

Strict eligibility conditions

The relief is not a blanket extension for all delayed renewable energy projects.

Developers must have been fully compliant with their contractual obligations as of February 27, 2026. The extension can only cover delays directly caused by the West Asia situation and cannot be used to address unrelated delays, project-management shortcomings or operational issues.

Grid connectivity and transmission relief also sought

MNRE has also called for coordinated action by the Ministry of Power, Central Electricity Authority, Central Electricity Regulatory Commission and grid operators.

The ministry has sought corresponding extensions for grid connectivity and General Network Access (GNA) arrangements, without financial penalties, wherever revised project timelines qualify for relief.

It has also sought matching extensions for applicable waivers of Inter-State Transmission System (ISTS) charges.

Relief aimed at protecting project economics

The move is expected to provide greater certainty to renewable energy developers dealing with international supply-chain disruptions.

By allowing additional time without penalties, the government is seeking to protect project economics, reduce avoidable contractual disputes and ensure that temporary geopolitical disruptions do not derail India’s renewable-energy expansion.

The decision also underscores the importance of Force Majeure provisions in protecting strategic infrastructure projects from extraordinary international events beyond the control of developers.