The Ministry of New and Renewable Energy (MNRE) has directed the Public Sector Undertakings (PSUs) to blacklist renewable energy developers that fail to complete the project within the prescribed deadline. This communication was directed to Solar Energy Corporation of India, NTPC, and NHPC, who are engaged in issuing tenders for private sector companies to develop renewable energy projects. The ministry also asked these PSUs to encash the bank guarantees of the developers in case of delay in commissioning projects. Industry sources said that encashing bank guarantees for delayed commissioning is a norm, but blacklisting companies is alarming. The Finance Ministry recently amended the GFR, 2017, to include provisions for blacklisting organizations that do not meet the government-prescribed deadlines. The proposal to blacklist developers might be counterproductive for the industry, as the project commissioning delays are due to several factors, such as the demand-supply mismatch in domestic modules due to the ALMM mandate.
Today: November 30, 2023