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Seci–Rajasthan Standoff Sparks Concern Among Clean-Energy Investors

A dispute between the Solar Energy Corporation of India (Seci) and Rajasthan Urja Vikas and IT Services Ltd (RUVITL) over a 630 MW firm and dispatchable renewable energy (FDRE) contract has raised alarms among investors tracking India’s green-energy transition. The conflict began after RUVITL attempted to withdraw from a legally binding power sale agreement (PSA), a move Seci has strongly objected to in its 9 October communication.

The contested project involves round-the-clock renewable power supported by energy storage systems. Seci argues that RUVITL cannot unilaterally exit the deal months after signing, warning of regulatory and contractual implications. The standoff emerges at a time when India needs nearly $13 trillion in non-fossil generation investment by 2035 to stay aligned with its net-zero targets—making policy certainty crucial for investor confidence.

The issue adds to broader sectoral concerns. The Union power ministry has recently directed Seci, NTPC, NHPC, and SJVN to cancel awarded contracts where signing power purchase agreements (PPAs) and PSAs is deemed unfeasible. Many discoms continue to delay PSA signings while waiting for lower tariffs, slowing momentum in project deployment. According to ICRA, only 5.8 GW of renewable capacity was awarded in the first eight months of FY26, compared to 47.3 GW in FY24 and 40.6 GW in FY25, while 40–45 GW of capacity remains stuck without signed PPAs.

The 630 MW FDRE tender was originally intended to serve Delhi discoms BRPL and BYPL, which did not sign the PSA due to regulatory delays. Seci then offered the power to other discoms, including RUVITL. The e-auction held on 25 July discovered a tariff of Rs 4.98 per unit, with letters of award issued on 7 August. Queries to Seci, RUVITL, and relevant government departments remained unanswered at the time of publication.