Dispute resolution body to ease off odds in RE space

New Delhi The government has set up of a dispute resolution mechanism to sort out the unforeseen issues between renewable energy (RE) power developers and contractors, on the one hand, and such Renewable Energy Implementing Agencies (REIAs) as Solar Energy Corporation of India Limited (SECI), NTPC, NHPC, and SJVN, on the other.

REIAs are designated by the Ministry of New & Renewable Energy (MNRE).

The Dispute Resolution Committee (DRC) will comprise three members who will be appointed with the approval of the Minister of New & Renewable Energy, official sources told Bizz Buzz. The members will be eminent persons of impeccable integrity with the upper age limit of 70 years. Further, members of the DRC “shall be located in NCR of Delhi so as to avoid expenditure on air travel and accommodation.”

All RE schemes, programmes, and projects being implemented through and by REIAs will fall within the DRC’s jurisdiction.

The mechanism of DRC will be applicable for contractual agreements between an REIA and contractors executing RE power projects owned by the REIA, provided the REIA concerned undertakes to abide by the decision coming out of this mechanism.

In case of all disputes, the application will first go to the REIA. If the applicant party is not satisfied with the REIA’s orders, then it can appeal in the DRC. The DRC will consider all kinds of cases of appeal against the decisions given by the REIA on disputes. It will over the requests for extension of time due to the recognized ‘force majeure’ events like flood, earthquake, delay in handing over of land by solar park developers, and delay in connectivity.

The cases will be dealt strictly as per the contractual agreements where applicable. In all such cases, RE power developers and contractors shall make an application to the REIA for a grant of extension of time (EoT) within the time specified in the contractual agreement.