Renewable energy project deadlines extended up to four months due to West Asia disruptions

By ET BureauLast Updated: Aug 25, 2026, 06:32:00 AM IST

Synopsis

Renewable energy projects may receive up to four-month deadline extensions. This relief applies to delays caused by West Asia situation disruptions. Agencies can allow extensions without penalties for eligible projects. The provision covers delays occurring on or after February 28, 2026. This move addresses potential disruptions to contract execution for goods and services.

New Delhi: The renewable energy ministry has advised implementing agencies and state governments to consider developers' requests to extend project completion deadlines for renewable power projects delayed by disruptions arising from the West Asia situation by up to four months.

This is in line with the department of expenditure's note saying disruptions directly or consequentially affecting contractual obligations could qualify as force majeure. For contracts where obligations were due for completion on or after February 28, 2026, the agencies such as NTPC, NHPC, SJVN, and Solar Energy Corporation may allow extensions by up to four months without imposing costs or penalties on contractors.

However, the relief will apply only where the contractor was not already in default as of February 27, 2026.

The force majeure provision will cover only delays directly attributable to disruptions caused by the West Asia situation and will not absolve parties of other contractual non-performance.

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The move comes as renewable energy projects face potential disruptions to the execution of contracts for goods, services and construction.

The renewable energy ministry has asked implementing agencies and state authorities to take the finance ministry's April 29 order into account while deciding requests for extensions.

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