If renewable energy companies miss project completion dates, the government will place them on a three- to five-year blacklist, according to a government decree viewed by Reuters. The New and Renewable Energy Ministry issued an order that stated, “If any renewable energy project is not finished by the set date of completion, then its bank guarantee should be encashed and the developer blacklisted after asking to demonstrate cause.”
According to the order released on Wednesday, the blacklisting would last for three to five years. Although the government decree said that blacklisting would be in conformity with its general financial regulations and would apply to all tenders, India has not yet removed any companies from consideration for renewable energy generation contracts due to delays. To meet its goal of 500 GW of renewable energy generation capacity by 2030, India has to install more than 40 GW of capacity each year.
The installed base of renewable energy in the nation is close to 175 GW. Because of interruptions in equipment supply brought on by high import levies on solar equipment, the pace of installation is currently less than 15 GW per year. Due to the pandemic, the Ministry granted multiple extensions, the most recent of which was an order in December 2022 that extended the project’s completion date by one year, to March 2024.