Centre Allows More Time for Delayed Green Energy Projects
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Summary: Green energy projects affected by legal delays get relief from the government.
The government has stretched the deadline for green energy projects, as prolonged legal challenges were causing delays. This will help developers who are dealing with regulatory uncertainty.
The Ministry of New and Renewable Energy (MNRE) has recognised delays caused by court cases related to overhead transmission lines passing through habitats of the endangered Great Indian Bustard as events beyond the control of project developers. As a result, these delays will be treated as force majeure, allowing affected projects more time to complete commissioning without facing penalties.
Several solar and wind power projects, particularly in Rajasthan and Gujarat, were stalled after approvals for transmission infrastructure were held up during judicial review. While generation assets were nearly complete, the lack of final permission for evacuation lines prohibited projects from being linked to the grid on time.
According to officials, the extension aims to ensure that developers are not penalised for delays arising from legal and environmental considerations. The ministry noted that transmission infrastructure is critical to operationalising renewable projects and that delays in approvals can significantly disrupt commissioning timelines.
The ruling is designed to relieve the pressure developers were facing financial penalties, lost incentives, or concerns about contracts due to missed deadlines. Companies are worried about the lack of trust caused by long approval processes, especially when projects are set to begin.
India has set strong green energy goals for the next years, but implementing it on time is an obstacle. By allowing for deadline flexibility in instances touched by legal processes, the government hopes to preserve momentum in the clean energy sector while also protecting the environment.
The decision is likely to bring short-term relief to affected projects and provide greater clarity for developers navigating similar regulatory hurdles in the future.
