The Ministry of New and Renewable Energy (MNRE) has stated that renewable vitality projects underneath growth can be eligible for time extension in mild of the second wave of Covid, however has refused to give a blanket extension within the absence of a nationwide lockdown.
Instead, “renewable vitality projects, being carried out via Implementing Agencies designated by the MNRE or underneath varied schemes of the MNRE, having their scheduled commissioning date on or after 1 April 2021… can apply to the involved implementing company for claiming time-extension in mission commissioning,” MNRE stated in an order on Wednesday.
‘PLI scheme can convey 8-12 GW extra photo voltaic manufacturing capability’
During the primary wave of Covid, the central authorities had given a blanket extension of 5 months to renewable projects, with a most permissible extension of six months.
“The new order is just gentle consolation for the trade, which is battling further prices and time delays in each facet of mission growth together with web site preparation, engineering, financing, procurement and building. Our conservative view is that the projects will want at the very least 3-4 months of further time,” stated Bridge To India MD Vinay Rustagi.
“Work at a majority of under-construction projects is halted proper now and migrant employees have left for his or her properties,” stated Amit Kumar, Partner, PwC. Most of the large-scale photo voltaic and wind projects are in rural areas, the place native villagers final yr had resisted the re-entry of migrant labourers to resume work due to worry of Covid, he added.
Renewables: Promising mission pipeline amid tepid capability addition brings cheer
Project prices, auctions
After the preliminary disruption brought on by Covid, public sale exercise had picked up within the second half of economic yr 2020-21. The whole renewable capability auctioned within the fiscal yr was 21.2GW, over 80 per cent of it going in the direction of grid-connected photo voltaic projects, in accordance to a report launched on Wednesday by Council on Energy, Environment and Water.
“Project prices of the auctioned capability can rise by round 10-12 per cent due to the continuing surge in commodity costs and second wave-related logistical prices,” stated Ankur Agarwal, Associate Director at India Ratings and Research. Global costs of uncooked supplies equivalent to glass and copper have been present process a powerful upcycle.
The rise in commodity costs together with the approaching imposition of the fundamental customs obligation can also be anticipated to push tariffs from their file lows. “Tariffs are doubtless to rise by at the very least 20 per cent in auctions throughout monetary yr 2021-22,” Kumar stated.