To revive stalled renewable projects, the power ministry orders cancellation of delayed contracts and renegotiation of key deals.
The Union Ministry of Power has initiated a massive clean-up of India’s renewable energy pipeline, directing state-owned power producers to cancel stalled green energy contracts where agreements have not progressed. The move aims to unclog a growing backlog of renewable projects delayed due to unsigned power purchase agreements (PPAs) and power supply agreements (PSAs).
According to officials aware of the matter, the ministry has instructed Solar Energy Corporation of India (SECI), NTPC Ltd, NHPC Ltd, and SJVN Ltd to scrap non-moving contracts by November. The decision was finalised during a meeting chaired by Power Secretary Pankaj Agarwal on 17 October.
These state-run renewable energy implementing agencies (REIAs) act as intermediaries between project developers and power distribution companies (discoms). However, many discoms have delayed signing PSAs, anticipating lower tariffs in future tenders — a trend that has stalled the commissioning of several projects.
Industry executives said this clean-up is expected to restore momentum in renewable capacity additions, particularly in solar and wind segments, which are crucial for meeting India’s 500 GW renewable energy target by 2030.
The ministry’s decision follows months of rising concern that delayed projects were distorting tender pipelines and limiting developers’ financial capacity to bid for new contracts.
Officials noted that future renewable energy tenders will be awarded only when PPA and PSA signings are ensured, streamlining the entire process.
Experts believe this reform could improve project execution timelines and strengthen investor confidence in India’s renewable sector, helping accelerate the transition to a cleaner, more reliable power grid.
