new delhi, June 16 -- Indian green energy developers and manufacturers are considering invoking "force majeure" clauses to delay project completion, citing disruptions in the supply of rare earth elements and magnets from China, three sources familiar with the matter said. The supply crunch is also likely to increase solar and wind power tariffs from upcoming renewable projects in the country, they added. A force majeure clause in contracts allows parties to be excused from contractual obligations in case of an extraordinary situation that makes it impossible or impractical to fulfil the commitment as per the contract. Given that India's renewable energy contracts ensure stiff penalties for delays, the invocation of a force majeure clause will protect developers and suppliers from the risk of penalties, including fines and encashment of bank guarantees. The development assumes significance given that it will impact India's ambitious green energy trajectory and hurt the manufacturing ecosystem for renewable energy equipment required for solar modules, wind turbines and batteries. "As supply chain issues continue, developers are scouting for options, including enforcing force majeure provisions in order to avoid penalties," said one of the three people mentioned above. The Union government has allowed force majeure in certain instances and extended the timeline of renewable energy projects, such as in 2020, due to the covid pandemic. Simarpreet Singh, executive director and chief executive officer (CEO), Hartek Group, which is involved in solar EPC, said, "The tightening supply of rare earth metals (REMs) from China has significant implications for local manufacturing of solar cells, modules, and related products. Although REMs constitute a small fraction of solar components, they are vital in enhancing overall efficiency." Rare earth elements play a key role in increasing the efficiency of solar modules. As of March 2025, India had a domestic solar module manufacturing capacity of 74 gigawatt (GW) and 18 GW of wind turbine capacity. A government official said that the Union ministry of new and renewable energy (MNRE) is monitoring the situation closely and has also discussed it with stakeholders. "The ministry is in favour of industry delegations reaching out to the Chinese suppliers to resolve the immediate supply issue," the official said. Queries sent to the ministry of new and renewable energy, Adani Green Energy, Suzlon, and Reliance Industries remained unanswered until press time. Renewable energy developers also expect a rise in prices of rare earth elements and an eventual increase in tariffs....