Centre May Rebid Gensol Green Contracts Amid Fraud Probe
POWER & RENEWABLE ENERGY

Centre May Rebid Gensol Green Contracts Amid Fraud Probe

The Central government is reviewing all green energy contracts awarded to Gensol Engineering Pvt. Ltd, raising the possibility of rebidding several high-value projects, sources told Mint. The review follows regulatory action against the company over alleged financial misconduct and concerns about its ability to deliver ongoing renewable energy contracts.

At the heart of the scrutiny is Gensol’s unexecuted order book worth approximately Rs 700 billion which includes major solar EPC (engineering, procurement and construction) and battery energy storage system (BESS) projects awarded by public sector giants like NTPC Ltd, Damodar Valley Corporation, and Singareni Collieries Company Ltd.

The review has been prompted by a 15 April interim order from the Securities and Exchange Board of India (SEBI), which barred Gensol and its promoters—Anmol Singh Jaggi and Puneet Singh Jaggi—from the securities market. SEBI accused the firm of fund diversion and forging documents, casting doubts over its operational integrity.

“The Centre is looking into the Gensol issue and every aspect of it, including the renewable EPC projects awarded by PSUs,” a government official was quoted as saying. The Ministry of New and Renewable Energy (MNRE), which oversees the Indian Renewable Energy Development Agency (IREDA), is keeping a close watch and may recommend rebidding the contracts if Gensol fails to demonstrate capacity for completion.

Another driving factor behind the government’s intervention is to protect over Rs 10 billion in outstanding loans to Gensol. IREDA and Power Finance Corporation (PFC) have reportedly lent Rs 6.63 billion and Rs 3.5 billion, respectively. The Ministry of Power, which supervises PFC, is also involved in reviewing the case.

PFC filed a complaint with the Economic Offences Wing (EOW) of the Delhi Police, alleging that Gensol submitted forged documents. PFC has initiated an internal investigation and is evaluating legal and regulatory action against the company.

SEBI’s findings suggest that the misappropriated funds were primarily used to purchase electric vehicles for leasing to a related entity. However, the broader implications threaten India’s renewable energy deployment, particularly the execution of capital-intensive EPC contracts that demand financial discipline and credibility.

According to Gensol’s latest investor update for the December quarter of FY25, the firm had a pending order book of Rs 700 billion, with Rs 292.8 billion worth of solar EPC projects booked in just the third quarter.

If rebidding occurs, it could delay multiple green energy deployments and lead to disruptions in India’s clean energy targets, already under pressure due to financing and execution challenges in the sector.

The Central government is reviewing all green energy contracts awarded to Gensol Engineering Pvt. Ltd, raising the possibility of rebidding several high-value projects, sources told Mint. The review follows regulatory action against the company over alleged financial misconduct and concerns about its ability to deliver ongoing renewable energy contracts. At the heart of the scrutiny is Gensol’s unexecuted order book worth approximately Rs 700 billion which includes major solar EPC (engineering, procurement and construction) and battery energy storage system (BESS) projects awarded by public sector giants like NTPC Ltd, Damodar Valley Corporation, and Singareni Collieries Company Ltd. The review has been prompted by a 15 April interim order from the Securities and Exchange Board of India (SEBI), which barred Gensol and its promoters—Anmol Singh Jaggi and Puneet Singh Jaggi—from the securities market. SEBI accused the firm of fund diversion and forging documents, casting doubts over its operational integrity. “The Centre is looking into the Gensol issue and every aspect of it, including the renewable EPC projects awarded by PSUs,” a government official was quoted as saying. The Ministry of New and Renewable Energy (MNRE), which oversees the Indian Renewable Energy Development Agency (IREDA), is keeping a close watch and may recommend rebidding the contracts if Gensol fails to demonstrate capacity for completion. Another driving factor behind the government’s intervention is to protect over Rs 10 billion in outstanding loans to Gensol. IREDA and Power Finance Corporation (PFC) have reportedly lent Rs 6.63 billion and Rs 3.5 billion, respectively. The Ministry of Power, which supervises PFC, is also involved in reviewing the case. PFC filed a complaint with the Economic Offences Wing (EOW) of the Delhi Police, alleging that Gensol submitted forged documents. PFC has initiated an internal investigation and is evaluating legal and regulatory action against the company. SEBI’s findings suggest that the misappropriated funds were primarily used to purchase electric vehicles for leasing to a related entity. However, the broader implications threaten India’s renewable energy deployment, particularly the execution of capital-intensive EPC contracts that demand financial discipline and credibility. According to Gensol’s latest investor update for the December quarter of FY25, the firm had a pending order book of Rs 700 billion, with Rs 292.8 billion worth of solar EPC projects booked in just the third quarter. If rebidding occurs, it could delay multiple green energy deployments and lead to disruptions in India’s clean energy targets, already under pressure due to financing and execution challenges in the sector.

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