Covid-19 impacted commissioning activity in H1 of fiscal 2021, recovery expected in H2
The halt to construction and related activities as well as labor migration due to the covid-19 pandemic, affected construction activity in Q1 of fiscal 2021. In relief to developers, MNRE had provided a 5 months extension to scheduled commercial operation dates after its initial allowance for an extension of lock plus 30 days in March 2020. Further, developers have an option to apply for further extension or force majeure in the case of extended delay to construction activity. This is expected to further delay in commissioning this fiscal (FY21). As a consequence, CRISIL Research expects only 5-6 GW of commissioning in the ongoing fiscal.
As far as supply of modules is concerned, most major global suppliers have resumed operations, with China still accounting for ~85% of the total imports (Apr 2020 to October 2020) and we expect delivery of equipment resumed as lockdown / mobility constraints within Indian states were lifted.
