MNRE Blacklists Solar Firm For Not Developing Solar Park

The Ministry of New and Renewable Energy (MNRE) has blacklisted a solar company for allegedly receiving government funds without developing a proposed solar park. The case pertains to a proposed solar park in Maharashtra.

According to the ministry, MNRE had, in principle, approved the company’s plan to establish a 500 MW solar park in Maharashtra on September 29, 2015. The park was intended to be developed in Dhule district, and the company formed a Special Purpose Vehicle (SPV) for its execution.

The MNRE stated that despite the company’s claims regarding land acquisition for the solar park, it failed to provide any evidence to substantiate these claims. The ministry noted this as an attempt to mislead and defraud the government. “Therefore, it is a case of criminal breach of trust, cheating and embezzlement of Government money which was released to the company as Central Financial Assistance (CFA),” the report said.

Site visit by MNRE team 

A team of officials from MNRE, Solar Energy Corporation of India (SECI), and Maharashtra Energy Development Agency (MEDA) visited the Dhule site on December 20, 2018, and found no site office or signs of physical progress.

The team reported that the company had taken no steps toward the development of the solar park. As a result, MNRE decided to blacklist the firm, Pragat Akshay Urja Ltd, which is registered in Madhya Pradesh.

Based on the team’s findings, SECI was also directed to recover the Central Financial Assistance (CFA) of ₹4.10 crore granted to the firm, along with accrued interest, as no work was undertaken for the sanctioned project.

Delhi HC order & alleged defiance 

The ministry referred to a Delhi High Court order regarding the firm, wherein the company mentioned depositing ₹2.17 crore on December 26, 2019, and expressed its intention to refund the subsidy amount received from the central government. However, the MNRE noted that the SPV of the company had not returned the remaining balance with interest. Even after four years, the firm has failed to refund the outstanding amount.

In its final order, MNRE stated, “It is clear that M/S Sai Guru Mega Solar Park and M/S Pragat Akshay Urja Ltd did not intend at all to develop the solar park even after receiving CFA from the Government of India and having interest accrued on it since December 2016 and are trying to evade refund of the balance amount disbursed by the government as CFA. And therefore, M/S Pragat Akshay Urja Ltd, the parent company of M/S Sai Guru Mega Solar Park Pvt Ltd is hereby blacklisted and debarred from entering any contracts with the Government of India, state government and any other government entity till the balance CFA and the interest accrued on it, are returned to MNRE.”