Dispute Resolution Mechanism for Solar/Wind Sector (Download PDF)

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A proposal to set up a Dispute Resolution Committee for the consideration of the unforeseen disputes between solar/wind power developers and SECI/NTPC has been approved by the Union Minister of State for Power and New & Renewable Energy (IC) and Skill Development & Entrepreneurship.

This move is expected to flip the smooth implementation of solar/wind energy projects in India. It will fulfil the long pending demand of the industry to resolve expeditiously arising beyond the scope of Contractual Agreement.

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Overview

  • The resolution mechanism was based on the fact that there is need to erect a transparent, unbiased Dispute Resolution Mechanism, consisting of an independent, transparent and unbiased Dispute Resolution Committee (DRC).

  • The DRC will help in 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 solar power developers/wind power developers and SECI/NTPC.

  • With the approval of Hon’ble Minister (NRE), a three member Dispute Resolution Committee (DRC) will be set up, consisting of eminent persons of impeccable integrity.

  • The upper age for the DRC members shall be 70 years.

  • So as to avoid expenditure on Air Travel & accommodation, the Committee members of DRC shall be chosen from the eminent persons located in NCR of Delhi

  • All solar/wind schemes and programmes/projects being implemented through SECI/NTPC shall be considered for resolution under the mechanism of Dispute Resolution Committee (DRC).

  • All cases of appeal against decisions given by SECI on Extension of Time requests based on terms of contract:

  • All such cases extension of time has been requested but not covered under the terms of contract shall also be considered.

  • The cases where the developer is not satisfied with the decision of SECI/NTPC and it decides to appeal after paying the required fee are also to be referred to DRC.

  • The Honourable Minister (NRE) shall finalize the recommendations of the ‘Dispute Resolution Committee’ (DRC) along with MNRE’s observations.

  • Involving the views of IFD, the Ministry after thoroughly examining of the recommendations shall forward the same to the Minister (NRE). This should not exceed twenty one (21) days of receipt of recommendation from the DRC.

  • The Committee will be free to interact with the relevant parties of the case and shall record their views before arriving at any decision.

  • No lawyers shall be permitted for presenting the case before the DRC.

- Published/Last Modified on: September 2, 2019

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