+
Power ministry to mandate renewable power generation obligation
POWER & RENEWABLE ENERGY

Power ministry to mandate renewable power generation obligation

The Power Ministry plans to make it mandatory for any thermal power producer planning to install a new generating capacity after April 1, 2024, to either set up or acquire renewable energy capacity equivalent to it. This will increase the country's capacity for renewable energy.

It intends to introduce an amendment to the Tariff Policy 2016 to incorporate the "renewable generation obligation (RGO)" provision in order to put this into practise.

In a draught note that was released on November 7 and distributed to stakeholders, it requested feedback on the plan within 21 days of that date.

The Power Ministry has recommended that as part of it, each new generating firm planning to put up a coal or thermal-based capacity after April 1, 2024, would also be required to create or acquire a comparable amount of renewable energy.

“In order to promote renewable energy sources, any generating company proposing to establish a coal or lignite-based thermal generation station after a specified date shall be required to establish such renewable energy equivalent to such capacity, as may be prescribed by the Central government from time to time after due consultation with stakeholders,” the statement read.

The capacity of renewable energy that must be established, acquired, or provided by new thermal generating stations based on coal or lignite must be at least 25% of the capacity of thermal generating stations being established, it was further added.

The project aims to reach the goal of producing 50% of electricity from non-fossil fuels.

See also:
ReNew Power to invest Rs.300 bn on scaling
Government identifies 10 states for green hydrogen manufacturing


The Power Ministry plans to make it mandatory for any thermal power producer planning to install a new generating capacity after April 1, 2024, to either set up or acquire renewable energy capacity equivalent to it. This will increase the country's capacity for renewable energy. It intends to introduce an amendment to the Tariff Policy 2016 to incorporate the renewable generation obligation (RGO) provision in order to put this into practise. In a draught note that was released on November 7 and distributed to stakeholders, it requested feedback on the plan within 21 days of that date. The Power Ministry has recommended that as part of it, each new generating firm planning to put up a coal or thermal-based capacity after April 1, 2024, would also be required to create or acquire a comparable amount of renewable energy. “In order to promote renewable energy sources, any generating company proposing to establish a coal or lignite-based thermal generation station after a specified date shall be required to establish such renewable energy equivalent to such capacity, as may be prescribed by the Central government from time to time after due consultation with stakeholders,” the statement read. The capacity of renewable energy that must be established, acquired, or provided by new thermal generating stations based on coal or lignite must be at least 25% of the capacity of thermal generating stations being established, it was further added. The project aims to reach the goal of producing 50% of electricity from non-fossil fuels. See also: ReNew Power to invest Rs.300 bn on scalingGovernment identifies 10 states for green hydrogen manufacturing

Next Story
Infrastructure Transport

Lucknow Metro East-West Corridor Consultancy Contract Awarded

The Uttar Pradesh Metro Rail Corporation has awarded the first construction-related consultancy contract for the Lucknow Metro East West Corridor to a joint venture of AYESA Ingenieria Arquitectura SAU and AYESA India Pvt Ltd. The firm was declared the lowest bidder for the Detailed Design Consultant contract for Lucknow Metro Line-2 under Phase 1B and the contract was recommended following the financial bid. The contract is valued at Rs 159.0 million (mn), covering design services for the corridor. Lucknow Metro Line-2 envisages the construction of an 11.165 kilometre corridor connecting Cha..

Next Story
Infrastructure Urban

Div Com Kashmir Urges Fast Tracking Of Jhelum Water Transport Project

The Divisional Commissioner of Kashmir has called for the fast-tracking of the Jhelum water transport project, urging district administrations and relevant agencies to accelerate planning and clearances. In a meeting convened at the divisional headquarters, the commissioner instructed officials from irrigation, public health engineering and municipal departments to prioritise the project and coordinate survey and design work. The directive emphasised removal of administrative bottlenecks and close monitoring to ensure timely mobilisation of resources and contractors. Officials were told to in..

Next Story
Infrastructure Urban

Interarch Reports Strong Q3 And Nine Month Results

Interarch Building Solutions Limited reported unaudited results for the third quarter and nine months ended 31 December 2025, recording strong revenue growth driven by execution and a robust order book. Net revenue for the third quarter rose by 43.7 per cent to Rs 5.225 billion (bn), compared with Rs 3.636 bn a year earlier, reflecting heightened demand in pre-engineered building projects. The company’s total order book as at 31 January 2026 stood at Rs 16.85 bn, supporting near-term visibility. EBITDA excluding other income for the quarter increased by 43.2 per cent to Rs 503 million (mn),..

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Open In App