Seci-Rajasthan clash alarms investors

A standoff between state-run Solar Energy Corp. of India (Seci) and Rajasthan Urja Vikas and IT Services Ltd (RUVITL) over a power sale agreement has raised concerns about the adverse impact on investors’ interest in India’s green energy trajectory.

- Utpal Bhaskar [e-mail]

Analysts warn the standoff could dent investor confidence, given that India needs $1.3 tn in clean-power investment by 2035.

(AFP)

The dispute centres around a 630 MW Seci contract from firm and dispatchable renewable energy (FDRE) projects, which will use energy storage to supply round-the-clock electricity.

Seci has objected to the distribution company RUVITL’s move to back out of the agreement, arguing that the power sale agreement (PSA) is legally binding, according to documents reviewed by Mint and two people aware of the development.