JSA Prism | Electricity and Power | August 2026

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Ministry of New and Renewable Energy Advisory on Force Majeure time extensions for Renewable Energy projects (West Asia situation)

The Ministry of New and Renewable Energy (“MNRE”) has issued an advisory[1] dated August 21, 2026 (“Advisory”), clarifying that the ongoing West Asia situation qualifies as a Force Majeure (“FM”) event for Renewable Energy (“RE”) projects. The Renewable Energy Implementing Agencies (“REIAs”), namely the Solar Energy Corporation of India Limited (“SECI”), the National Thermal Power Corporation Limited (“NTPC”), the National Hydroelectric Power Corporation Limited (“NHPC”) and the Satluj Jal Vidyut Nigam Limited (“SJVN”), may consider granting a time-extension of up to 4 (four) months in the Scheduled Commencement of Supply Date (“SCSD”)/Scheduled Commissioning Date (“SCD”). The extension may be granted under the FM provisions of Power Purchase Agreements (“PPAs”). Such extension may also be considered by the Power/Energy/RE departments of the State/Union Territory (“UT”) Governments and their respective agencies. The relief is contractual and not automatic, i.e., developers must run the FM process under their respective PPAs and demonstrate a direct nexus to the disruption.

Background

The Advisory follows a series of prior developments:

1. Department of Expenditure (“DoE”), Ministry of Finance O.M. No. 1/3/2026-PPD dated April 29, 2026 (“DoE OM”): The DoE, treats the ongoing West Asia situation as ‘war’ for FM purposes and permits an extension of not less than 2 (two) months and not more than 4 (four) months, for completion dates falling on or after February 28, 2026, without imposing any cost or penalty on the contractor.
2. MNRE’s earlier advisory[2] dated July 6, 2026: MNRE advised the REIAs and the State/UT Governments and their respective agencies to take into consideration the DoE OM when deciding requests from renewable power developers seeking time-extensions for implementation of their RE projects.
3. Representations from RE developers: Developers have sought a blanket extension of timelines for affected RE projects., For this, the developers rely on the advisory[3] dated July 31, 2026, issued by the Ministry of Housing and Urban Affairs (“MoHUA”) to the Chairpersons of all Real Estate Regulatory Authorities. The advisory permits such authorities to issue appropriate orders or directions extending the registration and corresponding completion timelines of registered real estate projects by up to 4 (four) months. This applies where the completion date, revised completion date or extended completion date falls on or after February 28, 2026.

Key directions in the Advisory (August 21, 2026)

MNRE examined the matter and advised as follows:

1. the Standard Bidding Guidelines for procurement of renewable power (solar/wind/hybrid/firm and dispatchable RE), issued under Section 63 of the Electricity Act, 2003, provide that the PPA must contain provisions with regard to FM definitions, exclusions, applicability and available relief on account of FM as per the industry standards;
2. PPAs generally treat ‘war’ as an FM event; and
3. in accordance with the FM provisions and the procedure for seeking FM relief under the PPA, SECI, NTPC, NHPC and SJVN as well as the Power/Energy/RE departments of the State/UT Governments and their respective organisations/agencies may consider granting a time-extension of up to 4 (four) months to the SCSD/SCD of RE power projects. This would apply where the SCSD/SCD or extended SCSD/SCD falls on or after February 28, 2026.

The Advisory expressly states that any time-extension should be considered in accordance with the contractual FM provisions and procedure under the PPA (i.e., the Advisory does not grant an automatic or blanket extension independent of the PPA process).

Underlying DoE OM clarification (April 29, 2026)

The DoE OM clarifies that:

1. the ongoing West Asia situation should be treated as ‘war’;
2. disruptions arising from the West Asia situation that have directly affected or consequentially impacted contractual obligations may be treated as FM;
3. entities may extend the completion dates falling on or after February 28, 2026 by not less than 2 (two) months and not more than 4 (four) months, without any cost or penalty, on a case-to-case basis after due examination;
4. FM relief is available only where the parties were not in default of their contractual obligations as on February 27, 2026;
5. only non-performance directly attributable to the West Asia disruptions is covered; other obligations revive after the extension period;
6. an FM clause does not entirely excuse a party’s non-performance but only suspends it for the duration of the FM; and
7. a party must give notice of FM within a reasonable time (not later than 14 (fourteen) days after the occurrence) and cannot claim FM after the event.

Parallel requests issued by MNRE

MNRE has marked copies of the Advisory to the following, with specific requests for complementary relief, including the following:

1. Ministry of Power: With a request to issue orders for similar relief to the affected renewable power project developers to the extent of FM declared for: (a) providing/extending General Network Access (“GNA”)/connectivity without any penalty; and (b) continuation of Inter-State Transmission System (“ISTS”) waiver/concession for the extended project period.
2. Central Transmission Utility of India Limited (“CTUIL”): CTUIL will take similar action on GNA/connectivity.

Practical takeaways for RE developers

1. Developers whose SCSD/SCD (or already-extended SCSD/SCD) falls on or after February 28, 2026, may approach the relevant REIA or State procuring agency for up to 4 (four) months’ extension under the FM clause of the PPA.
2. Relief remains subject to the specific contractual procedure, demonstration of direct/consequential impact of the West Asia situation, and the “not in default as on February 27, 2026” condition.
3. Complementary relief on GNA/connectivity and ISTS benefits will depend on follow-up action by the Ministry of Power and CTUIL.
4. Developers should assess whether their specific project delays are directly attributable to the West Asia situation and prepare supporting documentation accordingly.

Conclusion

The Advisory provides a clear policy signal from MNRE enabling REIAs and State/UT Governments and their respective agencies to grant FM-based time extensions of up to 4 (four) months for RE projects affected by the West Asia situation. However, it stops short of a blanket extension. Relief remains anchored in the contractual FM framework of each PPA, and developers must demonstrate a direct or consequential nexus between the West Asia disruptions and their project delay.

The complementary relief sought from the Ministry of Power and CTUIL on GNA/connectivity and ISTS benefits is yet to materialise, and developers should monitor it. Developers should promptly assess eligibility, prepare FM claims in accordance with the PPA procedure, and engage with REIAs/State agencies to secure extensions before milestone deadlines are triggered. Developers should also review the full Advisory for project-specific application.

This Prism has been prepared by:

Vishnu Sudarsan Partner

Shashank Singh Partner

Ravneet Gill Associate

Shiv Sankar Associate

Vignesh Ravichandran Associate

For more details, please contact km@jsalaw.com.

[1] Advisory no. 283/47/2026-GRID SOLAR

[2] Letter no. 283/47/2026-GRID SOLAR

[3] (Letter No. 0-17024/66/2018-HOUSING-UD/E-9042100)