Renewable Energy Ministry Orders Reissue of Solar Tenders to Enforce Local Cell Rule

India’s clean energy push has taken a firm regulatory turn, with the renewable energy ministry directing agencies to cancel and reissue certain tenders. The move follows concerns that some bids were hurriedly processed in order to bypass rules on using domestically-made solar cells and modules for government-backed projects.

Tenders Under Scrutiny

The ministry flagged tenders where companies were given just seven days to submit bids, raising doubts over whether the restricted timeline was meant to sidestep the June 1 mandate requiring exclusive use of locally-manufactured solar cells and modules. While the circular did not disclose the names of the agencies or the project values involved, it made clear that such practices would not be allowed to continue. Each agency has been granted 15 days to report on corrective measures.

Industry Outlook and Policy Timeline

Renewable energy agencies act as facilitators, bridging government and private developers, before passing generated electricity on to state power utilities. With India still heavily reliant on cheaper imports from China, the enforcement of local sourcing rules is critical for domestic manufacturing growth. According to a research note from SBI Caps (August 2025), India is expected to become largely self-sufficient in solar cell production by March 2027, though output in the early phases could fall short of demand.

Read More: PFC Partners with Export Finance Australia and Citi for India’s Clean Energy Projects.

Conclusion

By demanding a reissue of solar project tenders, the ministry is signalling its intent to ensure the integrity of India’s clean energy programme. The directive not only enforces the local sourcing policy but also sets a precedent for stricter compliance, helping align the country’s renewable ambitions with its manufacturing capabilities.

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