Ministry proposes cut in Renewable Generation Obligation for coal plant
POWER & RENEWABLE ENERGY

Ministry proposes cut in Renewable Generation Obligation for coal plant

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.

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.

Next Story
Infrastructure Transport

Tata, Airbus to Build India’s First Private Helicopter Line

In a landmark development for India’s aerospace sector, Tata Advanced Systems Limited (TASL) and Airbus will establish the country’s first private-sector helicopter assembly line in Vemagal, Karnataka. The facility will manufacture the Airbus H125 and H125M, marking a significant milestone in India’s push for self-reliance in aviation and defence manufacturing. The new Final Assembly Line (FAL) will produce the H125, the world’s best-selling single-engine helicopter, known for its versatility and performance in extreme environments. The first ‘Made in India’ H125 is expected to ro..

Next Story
Infrastructure Urban

NeGD to Support Bharat Taxi in Building Cooperative Ride Platform

In a significant move for India’s digital and mobility transformation, the National e-Governance Division (NeGD) of the Digital India Corporation, under the Ministry of Electronics and Information Technology (MeitY), has entered into an advisory partnership with Sahakar Taxi Cooperative Limited, the company behind Bharat Taxi — a first-of-its-kind, cooperative-led national ride-hailing platform. A Memorandum of Understanding (MoU) has been signed between NeGD and Sahakar Taxi to provide strategic advisory and technical support covering key areas such as platform integration, cybersecurity..

Next Story
Technology

MeitY Hosts Pre-Summit for India–AI Impact Summit 2026

The Ministry of Electronics and Information Technology (MeitY), Government of India, hosted a series of Pre-Summit events for the upcoming India–AI Impact Summit 2026 at the India Mobile Congress (IMC) 2025 in New Delhi. These sessions mark a key milestone ahead of the main summit, scheduled for 19–20 February 2026 at Bharat Mandapam, New Delhi. Delivering the inaugural address, S. Krishnan, Secretary, MeitY, highlighted India’s innovative and frugal approach to AI development. “We have adopted innovative means by learning from others’ experiences to build projects and products that..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Talk to us?