The Centre has clarified that the timelines of project developers might not be extended for the completion of hybrid and solar projects, for which bids had been completed prior to the basic Customs duty announcement on modules.

The Centre has also said that if it finds the developer has not taken adequate measures towards the implementation of the projects, they will be cancelled. In February, the government had issued an order saying that if a renewable energy was incomplete by the prescribted completion date, then the project's bank guarantee will be encashed and its developer will be blacklisted for three to five years asking them to show cause.

In March 2021, the government had said that from April 1, 2022, any solar PV module imports would attract a basic Customs duty of 40 percent. On the other hand, solar PV cells would be eligible for a 25 percent basic Customs duty. This affected solar projects of around 26,000 megawatts (MW). Hence, on December 29, 2022, the Ministry of New and Renewable Energy said the projects for which the bids had been submitted prior to March 9, 2021, would be given time till March 2024 to be completed.

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In a May 1, 2023, order, the ministry said that extension given to finish such projects is not unconditional. The Centre has told the renewable energy implementing agencies (REIAs) like NTPC, SECI and NHPC to examine every request they have got for seeking such project extensions under the policy on the basis of case-to-case.

The ministry has told the REIAs that it should grant extensions to only those cases where the developer has taken the required steps to complete the project but has still not been able to due to reasons beyond their control.

"Where the developer has taken no steps to implement the project but is merely sitting on the award, such projects shall not qualify for an extension, and consequence of cancellation of the project will follow," the ministry's order said, Monecontrol reported.

The ministry added that the question to be asked in such cases would be — if the land has been acquired, have orders been placed for balance of plan/modules/balance of system, etc.

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