RENEWABLE ENERGY

Power projects may not be able to use “grandfather” clause: MNRE

Renewable projects commissioned already commissioned might not be able to take advantage of the “grandfather clause” to import any solar equipment from China, after the government earlier assured them of such an exemption.

The issue arose after the Ministry of Finance was reluctant to approve of any exemptions, said people present at a meeting with the Ministry of New and Renewable Energy on Friday.

Adding a “grandfather clause” to existing power purchase agreements would mean that there is an understanding between solar developers and the government that the project costs more than the allocated budget at the time of closing of the deal, and hence, compensation will be provided to the developers via the distribution companies.

Instead, a formula based on the coal cess is likely to be implemented to recover the losses incurred due to the safeguard and basic customs duties, sources told ET.

Source
ET Energy World
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