India invokes Force Majeure Clause as renewable supplies face disruption

The Ministry of Finance has clarified that the halt in supply chains due to the spread of covid-19 will be considered as a case of natural calamity

As renewable energy supply chains face disruption due to the spread of novel coronavirus, renewable energy developers and associations have asked the Indian government to invoke Force Majeur clauses that could buy them time extensions on projects.

A Force Majeur clause relates to extraordinary events or circumstances beyond human control such as an ‘act of god’ or a natural calamity and pauses any contractual liability – the Ministry of Finance has clarified that the halt in supply chains due to the spread of covid-19 will be considered as such.

The Ministry of New and Renewable Energy (MNRE) said: “The renewable energy implementing agencies may grant suitable extension of time for projects, on account of coronavirus, based on evidences/documents produced by developers in support of their respective claims of such disruption of the supply chains due to spread of coronavirus in China or any other country.”

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