The Central government will blacklist renewable power companies if they do not meet project completion deadlines, according to a report by Reuters. The report cites an order issued by the Ministry of New and Renewable Energy saying, blacklisting will be for a period of three to five years.
"If any renewable energy project is not completed by the prescribed date of completion, then its bank guarantee should be encashed and the developer blacklisted after asking to show cause," the order issued on Wednesday said.
However, the report says India has not blacklisted any company from renewable energy generation contracts for delays so far. The blacklisting will be done in accordance with the government's General Financial Rules and would apply to all tenders.
To meet its goal of 500 gigawatts of renewable energy generation capacity by 2030, India has to install more than 40 gigawatts of capacity each year, the report said, adding that the installed base of renewable energy in the nation is close to 175 gigawatts. Due to equipment supply problems brought on by high import levies on solar equipment, the rate of installation is currently less than 15 gigawatts per year.
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The ministry issued multiple extensions to a few projects due to the pandemic, the most recent of which was an order in December 2022 that extended the project's completion date by one year, to March 2024.
In Budget 2023, Finance minister Nirmala Sitharaman announced several schemes related to green energy generation.
The finance minister said, “This Budget provides Rs 35,000 crore for priority capital investments towards energy transition and net zero objectives, and energy security by the Ministry of Petroleum and Natural Gas.”
“The Inter-state transmission system for evacuation and grid integration of 13 GW renewable energy from Ladakh will be constructed with investment of Rs 20,700 crore including central support of Rs 8,300 crore,” she added.