MNRE to set up dispute resolution panel for solar, wind projects implemented by SECI, NTPC

The Ministry of New and Renewable Energy (MNRE) has decided to set up a three-member dispute resolution committee (DRC) to look into disputes beyond contractual agreements between solar or wind power developers and Solar Energy Corporation of India (SECI) or state-run power giant NTPC.

This mechanism will cover all those projects that would be implemented through or by SECI and NTPC.

Solar and wind power industries have been demanding to set up such dispute resolution mechanism.

"It is felt that there is need to erect a transparent, unbiased dispute resolution mechanism, consisting of an independent, transparent and unbiased 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 solar power developers/ wind power developers and SECI / NTPC," an MNRE office order said.

According to the order, a three-member DRC will be set up with the approval of the new and renewable energy minister, consisting of eminent persons of impeccable integrity.

The upper age for the DRC members shall be 70 years, and its members shall be chosen from the eminent persons located in Delhi-NCR to avoid expenditure on air travel and accommodation.

The selection of the DRC members would be such that there is no conflict of interest involved. The mechanism of DRC will be applicable for all solar or wind schemes, programmes and projects being implemented through or by SECI and NTPC.

The DRC will consider cases including appeal against decisions given by SECI on extension of time requests based on terms of contract and all requests of extension of time not covered under the terms of contract.

It will examine all such cases referred to it, including the cases where the developer is not satisfied with the decision of SECI or NTPC and it decides to appeal after paying the required fee.

The order said the recommendations of the DRC, along with the MNRE's observations, will be placed before the new and renewable energy minister for final decision.

To arrive at any decision, the Committee will be free to interact with the relevant parties of the case and shall record their views. No lawyer shall be permitted to present the case before the DRC, it added.