Lok Sabha Question No. 3167 (UNSTARRED), answered on 2019-07-11
Subject: Solar Energy Corporation of India
Ministry: NEW AND RENEWABLE ENERGY
Asked by: Shrikant Eknath Shinde, Pritam Gopinath Munde, Vinayak Bhaurao Raut, Girish Bhalchandra Bapat

## GOVERNMENT OF INDIA MINISTRY OF NEW AND RENEWABLE ENRGY

## LOK SABHA UNSTARRED QUESTION NO. 3167

TO BE ANSWERED ON 11.07.2019

## SOLAR ENERGY CORPORATION OF INDIA

3167. Dr. Shrikant Eknath Shinde Dr. Pritam Gopinathrao Munde Shri Vinayak Raut Shri Girish Bhalchandra Bapat

## Will the Minister of NEW AND RENEWABLE ENERGY be pleased to state:

- (a) whether   solar   and wind power   industries have  been   demanding   dispute  resolution mechanism for  resolving the unforeseen   disputes that  may arise in   implementation of contractual agreements between solar or wind power developers and Solar Energy Corporation of India (SECI) or State-run power giant NTPC and if so, the details thereof;
- (b) whether the Government has decided to set up a three-member  Dispute   Resolution Committee (DRC) to Iook into disputes beyond contractual agreements;
- (c) if so, the details thereof and the criteria adopted for selection of the member of the DRC;
- (d) the time by which the aforesaid committee will start functioning;
- (e) whether SECI has signed multiple Power Supply Agreements (PSAs) with distribution licensees across the country; and
- (f) if s0, the names of the States with whom the multiple PSAs with distribution licensees have been signed?

## ANSWER

## THE MINISTER OF STATE (I/C) FOR NEW & RENEWABLE ENERGY AND POWER

- (a) Yes Sir. The Government has been receiving representations from solar and wind power industries and their associations like Solar Power Developers Association (AnnexureA) for setting up a dispute resolution mechanism for resolving the unforeseen disputes that may arise   in   implementation of   contractual  agreements   between solar or wind power developers and Solar Energy Corporation of India (SECI) or NTPC.
- Yes Sir: The Government vide Order No. 283/124/2018-Grid Solar dated 18.06.2019 has  issued the order for Setting up of a Dispute Resolution Mechanism to consider the unforeseen   disputes   between solar/ wind  power   developers and SECI/ NTPC, beyond contractual agreements.
- (c) Vide the Order No\_ 283/124/201&-Grid Solar dated 27.06.2019, the members of the Dispute Resolution Committee set up under this mechanism are aS under:
- Sh. M.F Farooqui (former DOT   Secretaryl   Heavy   Industry   Secretary, Ex-IAS; TN:1978)
- dated
- ii, Sh: Anil Swarup (former Coal Secretary/ School Edn. Secretary, Ex-IAS; UP:1981) Sh. A.K Dubey (former Sports Secretary, Ex-IAS, Kerala: 1982) The selection criteria are as per MNRE Order No: 283/124/2018-Grid Solar 18.06.2019.
- (d) Vide the Order No. 283/124/2018-Grid Solar dated 27.06.2019, the three member Dispute Resolution Committee has become functional:
- with   distribution licensees in the states of Andhra Pradesh, Assam, Bihar; Chhattisgarh, Delhi, Goa, Gujarat; Haryana, Himachal Pradesh, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Odisha, Punjab, Rajasthan; Tamil Nadu; Uttar Pradesh and the Union Territories of Andaman & Nicobar; Dadra and Nagar Haveli (DNH) and Puducherry.

## Former

Deputy National Security Advlsor; Govt. of India Defence Secretary; Govt. of India Secretary Defence Production, Govt. of India

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3rd Floor; The Press Trust of India Building, 4 Sansad

Delhi-110001 Phone: 9810222250

Email: spda:delhi@gmailcom; duttshekhar@yahoo.com

Website: wwwsolarpda.com

New

SPDA/DELHI/ MNRE/ 12-2018/05

## Shri Anand Kumar, LA8

Ministry of New and Renewable Energy Block-14, CGO Complex New Delhi

Subject:

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Shekhar Dutt; SM, IAS(Retd) Director General, SPDA Former Govemor of Cthattisgarh State

December 5, 2018

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711

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6

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Request for formation of Dlopute Resolution Committee (DRC) for solar power gector

This is in reference to our letter dated 27.04.2018 regarding formation of Dispute has witnessed significant increase in number of disputes, which have translated into litigations. These litigations have resulted into significant wastage of effort, time and money on part of disputing parties. This Committee would aim at resolving such issues.

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The proposal was discussed in detail during a meeting held with Principle Secretary to Hon'ble Prime Minister of India on 26.11.2018. As discussed in the meeting, we propose for the formation of DRC for solar sector as illustrated below:

## Scope

- Faster resolution of contractual issues related to time extension in Financial agencies, due to land acquisition, transmission lines, connectivity, & order issues etc: delays Jaw

## Membere

- One senior member (Retired personnel from NTPC , CEA, CERC , SERC etc )
- Special invitee from Industry association (optional)
- One senior legal member (Retired judge of Supreme Court, High Court etc )
- Third party consultant appointed by Nodal agency

## Process

- Unresolved disputes 0f developers, bankers, nodal agency shall be submitted to Dispute Resolution Committee (DRC) along with all the documentations
- Presentations by appellant/defendants followed by rejoinders and one-on-one discussions with relevant stakeholders
- DRC may ask for additional document as required which shall be submitted by stakeholder within 2 weeks:
- Final binding order\_by DRC within 8 weeks after completion Of proceedings:
- DRC may convene monthly meetings for decision on pending disputes

Gout

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It is noteworthy that agencies like National Highway Authority of India (NHAI) in details of one such mechanism in National Electronic Toll Collection (NETC) program by NHAI are annexed for your reference.

The adoption of such practices by SECI, NTPC & State DISCOMs in solar power sector would really be helpful to reduce the load of litigations from judiciary and timely resolution of various issues.

We look forward to positive consideration in this regard and early formation of the Committee. your

Thanking you

Yours sincerely

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Shekhar Dutt

Enclosure: As above