RENEWABLE ENERGY

Solar industry seeks four-month extension for all ongoing projects

The solar industry is seeking an extension of four months on all ongoing projects from the government owing to further disruptions in labour and supply chain due to the resurgence of Covid-19 in many parts of the country.

“Owing to the continued rise in COVID-19 cases and a re-surge in many parts of the country, solar power projects continue to face implementation issues due to the absence of Government officials, lockdowns, slow processes due to understaffed office being overly busy and pre-occupied with pending works,” said a statement by the National Solar Energy Federation of India (NSEFI),

Without an extension, some projects might lead to cancellations, the solar body said.

“[Non-extension] will lead to heavy liquidated damages to be paid by the developer on account of delayed project completion, or non-release of funds by financial institutions in absence of Financial Closure(FC) leading to extreme financial losses even for established players,” the letter added.

Projects in states such as Rajasthan, Maharashtra, and Madhya Pradesh have seen complete or partial lockdowns, disrupting the ongoing construction.

Source
ET Energy World
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