Opinion | It’s time to look for permanent solutions to fix an ailing sector

Last few years have been reasonably hectic for the renewable industry in India, with the Indian government solidly backing its growth. The intention of the government to promote renewables is fairly evident from the commitment made by our Prime Minister Narendra Modi, at various international forums.

In the last few months, fault lines have started developing in the renewable capacity development program of India with various issues coming to surface, including bids not getting fully subscribed, negotiations after transparent bidding process, and bidders’ discomfort with the ceiling tariffs in a bidding process. However, what seems to have become the last straw, is the state of Andhra Pradesh’s call for renegotiation of already concluded PPAs. Of course, an issue of major concern for international investors and for the Indian government’s ambitious renewable energy programme over the next decade.