Centre To Consider Relief For 44 GW Of Stalled Renewable Projects

10 Jul 2026 CW Team

The Centre is preparing to hold an inter-ministerial meeting to consider a one-time relief package for more than 44 GW of stranded renewable energy projects that have not secured power purchase agreements. Gigawatt (GW) is used to denote these capacity figures. The projects were tendered by Renewable Energy Implementing Agencies since April 2023 and have remained stalled pending contracts.

The meeting will bring officials from the Ministry of New and Renewable Energy (MNRE) and the Ministry of Power together to examine possible measures to support developers. A meeting chaired by the Prime Minister's Adviser Tarun Kapoor on six May saw industry representatives urge the ministry to prepare a one-time package specifically for stranded projects. Officials will review proposals and assess options to expedite signing of agreements with distribution companies (discoms).

Sources indicate that over 44 GW of capacity remains without signed power purchase agreements, while government statements in September 2025 warned that up to 40 GW of solar and wind projects could be rebid if they continued to lack contracts. At the time officials said efforts were under way to help successful bidders secure arrangements with discoms and that, where those efforts failed, the government could close bids without financial loss because no investments had been made beyond the price discovery stage. The current review aims to balance developer relief with protection of public finances.

Ministers remain opposed to an extension of the Inter-State Transmission System charge waiver for new projects. The waiver scheme expired on 30 June 2025 and since then exemptions have been granted only on a case-by-case basis in force majeure situations. Officials will therefore consider support measures that do not involve broad transmission charge concessions while seeking ways to unlock stalled capacity.

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