Markets

Update On MNRE Blacklisting Of Solar Firms

Following Court Order Blacklisted Companies Can Continue Participating In Indian Solar Tender For The Time Being

Anu Bhambhani
  • The MNRE had announced in August 2016 that it has blacklisted two firms, Emami Power Limited and Oriental Sales Agencies, from participating in any of its programs or schemes for the next three years
  • The ministry acted on information about these firms indulging in malpractices from NTPC
  • Now, the High Court of Delhi has issued to revoke the blacklisting of the companies until the next hearing, which is scheduled for this month

The Ministry of New and Renewable Energy (MNRE) has to shelve blacklisting two Indian firms (see MNRE Blacklists Firms) after intervention of the High Court of Delhi. This means the companies can continue to participate in Indian solar tenders until the next hearing date.

In early August 2016, state-run utility National Thermal Power Corporation (NTPC) had found the two concerned firms, M/s Emami Power Limited and M/s Oriental Sales Agencies (India) Private Limited, indulging in malpractices. Though no specific reason was given, the two were adjudged by NTPC to be involved in some wrongdoing under the tenders it issued for Phase-II of the Jawaharlal Nehru National Solar Mission (JNNSM). The NTPC is in charge of adding 15 GW of solar power capacity to the country's overarching target of 100 GW of solar by 2022.

In consequence, MNRE promptly issued orders to blacklist the two firms from participating in any of the ministry's schemes or programs for the next three years.

The new development comes probably after the companies, who share the same postal address in Kolkata, approached the court against MNRE decision. The next date of hearing is September 19, 2016. No further details are known.

Emami Power Limited set up a 10 MW solar power plant in Karnataka's Pavagada region some time back, for which Sterling and Wilson is the EPC contractor. The project was commissioned on March 17, 2016.