Get the full lowdown on what’s shaking up India’s renewable energy sector now
Gensol Engineering Pvt. Ltd., one of the leading companies in India’s renewable energy segment, is facing tough times since the Indian government is now reviewing contracts on green energy. This is in the wake of allegations of financial misconduct against the promoters of the company, and projects may face shifts that will raise doubts about their capability, thus requiring rebidding for contracts.
Background of the Investigation
The Securities and Exchange Board of India (SEBI) issued a temporary prohibition order on Gensol’s promoters, Anmol Singh Jaggi and Puneet Singh Jaggi, for indulging in the securities market on April 15, 2025. The order cites allegations of fund diversion and forgery, including obtaining company funds aimed at electric vehicle (EV) purchases for the acquisition of a luxury apartment. SEBI also commenced a forensic audit on Gensol.
Two independent directors have resigned from GenSOL’S board due to the allegations – Harsh Singh, Kuljit Singh Popli – citing governance issues. Clearly, it is a serious situation damaging the company’s operations.
Government’s Review of Contracts
As part of a government inquiry into all green energy projects awarded to Gensol, Gensol’s projects embedded in public sector undertakings (PSUs), NTPC Ltd., Damodar Valley Corporation (DVC), and Singareni Collieries Company Ltd., have also come up for scrutiny. The contracts area worth about ₹7,000 crore.
This situation is being monitored carefully by the Ministry of New and Renewable Energy (MNRE), which administered the Indian Renewable Energy Development Agency Ltd. (IREDA). With the kinds of allegations against Gensol promoters, it is thought that these contracts may be rebid for timeliness to protect public funds.
Financing Exposure & Legal Actions
Gensol’s financial exposure has raised alarm bells among its lenders. IREDA and Power Finance Corporation Ltd. (PFC) have loaned ₹663 crore and ₹350 crore, respectively, to Gensol, while PFC has lodged a police complaint with the Economic Offences Wing (EOW) of Delhi. The lender is examining several sources of recovery action, including insolvency proceedings, for the dues not paid.
The review by the government will ensure that financial outflows on this scale are not pushed into the assets classified as non-performing, which will have concerns for the overall stability of the financial systems relevant to renewable energy.
Effect on Renewable Energy Targets
He said such contracts of Gensol are part of India’s ambitious target, which is to generate 500 GW power from renewable sources by 2030. These contracts will slow down the pace if they get delayed or disrupted. The present proactive activity of the government in reviewing and potentially rebidding these contracts shows its strong message in pressing forward with going ahead in the renewable energy sector. The situation also highlights the importance of financial discipline and governance in executing large-scale infrastructure projects. Ensuring that companies entrusted with such projects adhere to high standards is crucial for the sector’s credibility and success.
Gensol’s International Operations
Amid the domestic turmoil, Gensol’s West Asia operations are reportedly considering separating from the parent company to mitigate the fallout. The Dubai-headquartered arm, holding significant solar project contracts worth AED 175 million (approximately ₹406.75 crore), is exploring this move to protect its interests. Such a separation could help insulate the international operations from the issues facing the parent company in India.
Gensol Engineering’s current predicament serves as a cautionary tale about the critical role of corporate governance and financial integrity in the renewable energy sector. The government’s thorough review and potential rebidding of contracts aim to ensure that public funds are utilized effectively and that projects contributing to India’s renewable energy goals proceed without hindrance. The outcome of this situation will likely influence future policies and practices within the sector, emphasizing the need for transparency and accountability.
