MNRE sets Dispute Resolution Mechanism to solve unforeseen disputes between solar or wind power developers and SECI or NTPC

Jun 20, 2019 | by Avantis RegTech Legal Research Team

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The Ministry of New and Renewable Energy (MNRE) on June 18, 2019, has passed an Order for setting up of a Dispute Resolution Mechanism (DRM) to consider the unforeseen disputes between solar or wind power developers and SECI or NTPC beyond contractual agreements. The Solar and Wind Industries have been demanding for setting up of Dispute Resolution Mechanism by MNRE for quite some time, to resolve expeditiously, unforeseen disputes that may arise beyond the scope of Contractual Agreements between solar power developers or wind power developers and SECI or NTPC.

The Government after careful examination of the issues involved, issues the following orders: 

1)A three member Dispute Resolution Committee (DRC) will be set up with the approval of Hon'ble Minister (NRE), consisting of eminent persons of impeccable integrity. The upper age for the DRC members shall be 70 years. The Committee members of DRC shall be chosen from the eminent persons located in NCR of Delhi so as to avoid expenditure on Air Travel & accommodation. The selection of DRC Members would be such that there is no conflict of interest involved. 

2)The mechanism of Dispute Resolution Committee (DRC) will be applicable for all solar/ wind Schemes/ Programmes/ Projects being implemented through or by SECI or NTPC.

3)The DRC will consider following kinds of cases:

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

b)All requests of Extension of Time not covered under the terms of contract

4)The 'Dispute Resolution Committee' (DRC) will examine all such cases referred to it, including the cases where the developer is not satisfied with the decision of SECI/NTPC and it decides to appeal after paying the required fee as laid down under Para (ii) (a) above, in a time bound manner and submit its recommendations to the Ministry of New & Renewable Energy (MNRE), not later than twenty-one (21) days from the date of reference. 

5)The recommendations of the 'Dispute Resolution Committee' (DRC) along with MNRE's observations, will be placed before Hon'ble Minister (NRE) for final decision. The Ministry shall examine and put up such recommendations to Minister (NRE) with the comments of IFD within twenty one (21) days of receipt of recommendation from the DRC. 

6)DRC members shall be paid Rs.4,000/- per sitting, not exceeding Rs.20,000/- per member per case referred. Cases involving similar issues will be treated as one case. The fee for DRC members shall be paid by SECI/ NTPC. 

7)The meetings of DRC shall be organized in the premises of SECI/ NTPC respectively. All arrangements for the DRC meeting shall be made by SECI/ NTPC. 

8)The DRC members shall be provided transportation from their place of residence to the venue of the meeting and back.

9)To arrive at any decision, Committee will be free to interact with the relevant parties of the case and shall record their views. For presenting the case before the DRC, no lawyers shall be permitted.


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