Ministry proposes cut in Renewable Generation Obligation for coal plant

11 Oct 2023 CW Team

In a notable departure from the norm, the Ministry of Power has unveiled a draft notification outlining its intention to significantly reduce the renewable generation obligation (RGO) for upcoming coal and lignite-based power plants.

According to the latest draft notification issued on October 6, the proposed mandate aims to decrease the current obligation of 40% to a range of 6-10%, contingent upon the commissioning date of the respective plants.

This amendment, in harmony with the Energy Conservation Act of 2001, seeks to curb fossil fuel consumption in the nation. According to the draft, power plants commencing operations by March 31, 2023, must adhere to a 6% RGO. Those commissioned between April 1, 2023, and March 31, 2025, will be subject to a 10% mandate. Obligations for plants operational after April 1, 2025, will be determined based on their commercial operation dates.

The document underscores the pivotal role of coal and lignite stations in diminishing reliance on fossil fuels by integrating electricity from renewable sources. The revised RGO percentages are positioned as a strategic move to encourage a higher proportion of electricity derived from non-fossil fuel sources.

Emphasising flexibility, the draft stipulates that designated power producers can opt to establish renewable energy generation facilities or procure the necessary renewable energy. Moreover, companies with multiple coal or lignite plants can consolidate their RGO requirements.

The Ministry has also cautioned about penalties for non-compliance, although the specific penalty structures are still under discussion. This draft notification is anticipated to supersede the previous one dated February 27, 2023, concerning renewable generation obligation.

Infrastructure Urban

06 Jul 2026

ABS Marine Sees CRISIL Credit Rating Upgrade

ABS Marine Services has secured an upgrade to its long term and short term credit ratings from CRISIL, reflecting improved profitability and revenue growth through long term contracts. CRISIL moved the long term rating from BBB+/Stable to A-/Stable and revised the short term rating from A2 to A2+. The action signals strengthened financial metrics and operational resilience. The company benefited from durable client relationships with firms such as ONGC and Schlumberger. The rating decision followed stronger cash flows and an enlarged bank loan facility, which increased from Rs 3,705 million (m..

Project BRAHMANK Marks 16 Years Of Strategic Roads In Arunachal

Project BRAHMANK is marking 16 years of work to establish strategic road and bridge links across Arunachal Pradesh, maintaining and developing 811 kilometres of roads and nearly 86 bridges that range from small culverts to large steel and arch bridges. These transport links are described as critical for ensuring year-round movement of defence personnel, equipment and essential supplies while improving everyday travel for people in remote villages. The project balances national security requirements with regional development by focusing on reliable access in challenging terrain. Notable enginee..

Longleng CSOs Give One Week Ultimatum Over Two-Lane Highway

Civil society organisations (CSOs) in Longleng district have demanded immediate restoration of the deteriorating Changtongya–Longleng two-lane road and sought a detailed status report on the stalled construction within one week. The demand followed a consultative meeting convened under the Phom Peoples' Council (PPC) to discuss welfare and development concerns. PPC president YB Angam Phom said prolonged non-maintenance had caused hardship to commuters and affected transportation, local commerce and the district's development. The meeting urged authorities to undertake immediate restoration a..