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Legal Central Ministry of Power Electricity Act, 2003

The Ministry of New & Renewable Energy issued a order on setting up of a Dispute Resolution Mechanism to consider the unforeseen disputes between Renewable Energy Power Developers and any other Renewable Energy Implementing Agency designated by MNRE beyond contractual agreements

07-Jun-2023 | F. No. 283/56/2019-GRID SOLAR/Pt.

The Ministry of New & Renewable Energy issued a order on setting up of a Dispute Resolution Mechanism to consider the unforeseen disputes between Renewable Energy Power Developers and any other Renewable Energy Implementing Agency(REIA) designated by MNRE beyond contractual agreements.

By virtue of the Order, it is stated that there shall be a transparent, unbiased Dispute Resolution Mechanism, consisting of an independent, transparent and unbiased Dispute Resolution Committee (DRC), for resolving the unforeseen disputes that may arise in implementation of contractual agreements and also for dealing with issues which are beyond the scope of Contractual Agreements between Renewable Energy (RE) Power Developers, EPC Contractors and SECI, NTPC, NHPC, SJVN any other Renewable Energy Implementing Agency (REIA), designated by MNRE

Further, the following is issued, namely:

1.The mechanism of Dispute Resolution Committee (DRC) will be applicable for all RE Schemes, Programmes and Projects being implemented through REIA.
2.This mechanism shall also be applicable for contractual agreements between REIA and the EPC Contractor, executing RE Power Project owned by REIA, provided REIA undertakes to abide by the decision coming out of this mechanism.
3.In case of all disputes, whether covered by PPA, EPC Contract and Agreement or not, the application shall have to be made first to the REIA. REIA would pass speaking orders on such requests, with the objective being to give a just solution to the RE Power Developers/ EPC Contractors with a sense of justice and fair play, even in situations not covered by PPA and EPC Contract Agreement, so that the aim for setting up of renewable projects are achieved. If the applicant party is not satisfied with the orders of REIA, then it can appeal to the DRC.

For more details , please refer to the attachment.

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