New Delhi
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Mumbai
: The Centre is reviewing all green energy projects awarded to the embattled Gensol Engineering Pvt. To ensure timely completion, the company even though some contracts need to be reconstructed, the two said, even if this requires reconsideration.
The concerns of the center are caused by a considerable part of Gensol ₹The 700 billion orders of books are from state-owned companies. NTPC Ltd, Damodar Valley Corp. Ltd (DVC) and Singaporeni Collieries Co. Ltd have placed large orders with a company led by Jaggi Brothers, which has been accused of fund transfer and forgery by market regulators. These orders are related to solar engineering, procurement and construction (EPC) and battery energy storage systems (BESS).
One of the two mentioned above said: “The center is looking at the Gensol issue and its various aspects, including the renewable energy EPC project granted by public sector enterprises.”
The SEBI interim order on Gensol points to the company’s critical infrastructure contracts and how financial discipline and reputation are enforced.
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The second person said that although the Department of New and Renewable Energy (MNRE), which oversees the operation of IREDA, is supervising the situation, if the completion of Gensol’s project seems to be infeasible, then a reconsideration of the EPC contract could be considered.
MNRE’s move is also aimed at preventing state-owned energy sector financiers ₹The shares of Rs 10 million crore turned into bad debts. India Renewable Energy Development Agency Ltd (IREDA) and Power Finance Corp. Ltd lend to the company ₹6.63 billion and ₹3.5 billion respectively.
The Ministry of Trade Union Power, the Ministry of Node Financing (PFC) is also studying the problems and failures of lenders in the country’s largest power sector.
Meanwhile, the PFC said on Tuesday that it had filed a complaint with the Ministry of Economic Crime (EOW) of Delhi Police, allegedly filed forged documents by Gensol. The lender said it is exploring all possible options and the matter is being investigated internally.
Mint Earlier reports, the PFC is exploring all options, including handing over the corporate court to Gensol Engineering.
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Queries mailed to both departments have not been answered until the time of publication.
Wide impact
The market regulator’s interim order on April 15 banned Gensol Project and its sponsors Anmol Singh Jaggi and Puneet Singh Jaggi, also started in the securities market and also pointed out the possible impact of fund transfers and governance on EPC projects.
Securities in India (SEBI) (SEBI) warned in the order: “While fund transfers occur primarily in the context of electric vehicles (EVs) designed to be leased to affiliates, the risks it poses neither quarantine nor contains.”
“The company (Gensol) has a substantial order book that includes critical infrastructure contracts awarded by government and public sector entities in the field of renewable EPC. These contracts are not only capital-intensive, but also require strict financial discipline, timely execution and a good reputation for reconsidering projects to address project flows and institutional trusts.”
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As of the December 2024-25 quarter, the company’s unexecuted order books are nearby ₹According to speeches by its investors, 70 million ₹The third quarter itself was 29.28 million.
The company entered the BESS segment after winning a capacity project of 570MW/1,140MWH in 2023-34.
