India's renewable energy ministry has asked clean energy agencies to cancel and reissue tenders for government projects that were rushed through in an attempt to circumvent certain rules, according to a Friday circular posted on its website.
Most Indian companies use cheaper China-made solar cells, but, starting June 1, rules under India's clean energy policy require developers of government projects to use only locally-made modules and cells.
Renewable energy agencies act as intermediaries between the government and private players and issue tenders for projects. Once the projects are built, the electricity is sold to state power utilities.
Some agencies gave companies only seven days to submit bids, the ministry said in the circular, without providing details on which agencies were involved or the values of such projects.
This short window may have been used to avoid a rule that requires government-backed solar projects to use domestic solar cells, the ministry said.
The agencies have been given 15 days to report back on the action taken.
India should be largely self-sufficient in solar cells only by March 2027, and effective production could be lower in the initial quarters, SBI Caps said in a research note in August.
