In an official circular, the Ministry of New and Renewable Energy has directed Public Sector Undertakings (PSUs) to exclude renewable energy developers for 3-5 years if they fail to commission renewable energy projects within the deadline.
The official notification has been sent to Solar Energy Corporation of India (SECI), NTPC and NHPC. SECI is a statutory body under MNRE, responsible for tendering renewable energy projects. Government owned NTPC is India’s largest power utility, while NHPC is the largest hydropower developer in India. Both these organizations also outsource renewable energy projects to private developers.
The official circular also stated that in case of delay in project completion, bank guarantees will be encashed.
Although none of the renewable energy developers have so far been blacklisted for project delays by the government, the official notification informed the blacklisting was in accordance with the government's General Financial Rules and would apply to all tenders.
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