The Ministry of New and Renewable Energy (MNRE) issued a directive on April 6, 2026, designating the Solar Energy Corporation of India (SECI) as the sole Renewable Energy Implementing Agency (REIA) for the issuance of new renewable energy procurement bids. The communication, signed by Scientist ‘C’ Mohd Azmal Mansoori, follows high-level review meetings held on February 25 and March 27, 2026, intended to streamline the central government’s 50 GW annual bidding trajectory and address a mounting backlog of unsigned power agreements.
SECI as Sole Intermediary Procurer
Under the new mandate, SECI assumes the exclusive role of intermediary procurer for the central government’s renewable energy targets. Operating under the Tariff-Based Competitive Bidding (TBCB) framework, SECI acts as a market maker, signing back-to-back Power Sale Agreements (PSAs) with developers and Power Purchase Agreements (PPAs) with distribution licensees (DISCOMs).
The directive reinforces the eligibility criteria for any entity serving as an REIA. To qualify, an Indian company must possess a valid Category-I electricity trading license, demonstrate a net worth exceeding ₹500 crore (excluding revaluation reserves), and maintain a long-term credit rating of “A” or above. This centralization aims to re-assert central control over the procurement process and reverse a recent market trend where offtakers have increasingly bypassed intermediary agencies to deal directly with developers.
Shifting Roles: Impact on NTPC, NHPC, and SJVN
The directive effectively terminates the authority of the other three designated REIAs—NTPC Limited, NHPC Limited, and SJVN Limited—to issue new procurement bids. However, these agencies retain significant responsibilities regarding their existing portfolios:
- Existing Bids: Fulfilling all regulatory and administrative obligations for bids already issued prior to the directive.
- Execution of Agreements: Maintaining responsibility for the execution of PSAs and PPAs for all projects that have already received Letters of Award (LoAs).
- Tenure of Obligations: Discharging duties toward developers and procurers until the conclusion of the tenure of such agreements for completed bidding processes.
Backlog Clearance and Procedural Overhaul
A centerpiece of the MNRE directive is a mandatory procedural overhaul to clear the current national PSA backlog, which industry data indicates has exceeded 40 GW. SECI alone accounts for 11.8 GW of this unsigned capacity across 12 concluded tenders.
REIAs are now required to conduct a structured review of all cases where PSAs remain unsigned several months after LoA issuance. Projects must be categorized as follows:
- PSA Signing Likely: Cases where negotiations are active and reaching finality.
- PSA Signing Difficult or Unlikely: Cases where execution has stalled significantly.
For the “unlikely” category, agencies must perform a connectivity check to determine if awardees have secured grid access. Specifically, they must identify if developers have applied for connectivity via the LoA route, the Land route, or the Land + Bank Guarantee (BG) route. For awardees found non-compliant with connectivity requirements or where PSA execution remains improbable, the directive mandates the phased cancellation of LoAs in accordance with Standard Bidding Guidelines.
New Rules for Future Tendering and Bidding
To prevent further accumulation of “unsold power,” the MNRE has introduced strict conditions for all future bidding activities:
- Demand Assessment and Advance Commitment: Before issuing a Request for Selection (RfS), REIAs must engage states and end-procurers to assess actual power needs and peak requirements. Crucially, the ministry now emphasizes securing advance procurement commitments from states before bid issuance to ensure tenders align with real-world demand.
- Negotiations: The directive explicitly discourages post-tender tariff renegotiations with developers or offtakers intended to revise discovered tariffs.
- Green Shoe Option: REIAs are forbidden from including ‘Green Shoe’ options (additional capacity) in tenders without prior approval from the Appropriate Commission, as per Tariff-Based Competitive Bidding Guidelines.
Market Context and Implementation
The directive arrives as the industry faces a “vicious cycle” of delays. Industry analysts note that the pressure to meet the 50 GW annual bidding target has historically led to auctions being finalized before offtake agreements were secured. This is further complicated by the impending expiration of the Inter-State Transmission System (ISTS) waivers in June 2025. DISCOMs have shown hesitancy in committing to long-term PSAs until there is clarity on waiver extensions or the final impact on transmission charges.
Effective immediately, this centralization shifts the responsibility of meeting the 2030 500 GW target primarily onto SECI’s procurement pipeline, while requiring all former REIAs to honor and execute their existing contractual commitments.
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