MNRE Makes Few Amendments in Provisions for DRC

The Ministry of New & Renewable Energy (MNRE) has made few amendments in the existing provisions for the Dispute Resolution Mechanism under which disputes are considered between solar/ wind power developers and SECl/ NTPC.

MNRE

The amendment has been made w.r.t. fee payable in case of extension of dispute time.

As per the ministry notification, all applications before Dispute Resolution Committee (DRC) under categories (a) all requests for extension of time due to recognized ‘Force Majeure’ events, (b) all requests of extension of time not covered under the terms of contract; and (c) all disputes other than those pertaining to ‘extension of time’ between SECl/NTPC and developer shall be accompanied with the applicable fee.

As per the new amended provision, “In case of Extension of Time dispute, the fee payable shall be 5 percent of the impact of SECl/NTPC’s decision being challenged, with the impact being limited to the Performance Bank Guarantee (PBG) submitted for the project concerned, and which in no case be less than Rs one lakh and not more than Rs one crore.”

However, in the existing provision, “In case of Extension of Time dispute, the fee payable shall be 5 percent of the impact of SECl/NTPC’s decision being challenged, with the impact being limited to the Performance Bank Guarantee (PBG) submitted for the project concerned. A minimum fee of Rs one lakh would be payable even if the 5 percent of the impact of SECl/NTPC’s decision being challenged, is less than Rs one lakh.”

For more details of amendments click here.

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Manu Tayal

Manu Tayal

Manu is an Associate Editor at Saur Energy International where she writes and edits clean & green energy news, featured articles and interview industry veterans with a special focus on solar, wind and financial segments.

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