By Sarita Chaganti Singh
NEW DELHI (Reuters) -India will blacklist renewable power companies for three-to-five years if they do not meet project completion deadlines, a government order seen by Reuters shows.
"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 by the new and renewable energy ministry said.
The blacklisting will be for a period of three to five years, the order issued on Wednesday said.
The ministry did not immediately respond to queries sent by Reuters.
So far India has not blacklisted any company from renewable energy generation contracts for delays, but the government order said the blacklisting was in accordance with the government's General Financial Rules and would apply to all tenders.
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India needs to add over 40 gigawatts capacity annually to achieve its commitment to 500 gigawatts of renewable energy generation capacity by 2030. The country's renewable energy installed base is nearly 175 gigawatts.
The pace of installation is less than 15 gigawatts per annum following disruptions in equipment supply caused by heavy import duties on solar equipment.
As a result of the pandemic, the ministry allowed several extensions, most recently an order in December 2022 granted a one-year extension to March 2024 year for project completion.
(Reporting by Sarita Chaganti SinghEditing by Raissa Kasolowsky and Barbara Lewis)
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
