Reliance Power to Challenge SECI's Ban on Clean Energy Tenders

Reliance Power announced it would challenge a three-year ban imposed by India’s top renewable energy agency. The Solar Energy Corporation of India Limited (SECI) banned Reliance Power and its subsidiaries after discovering a fake bank guarantee while scrutinising a tender bid, according to a Reuters report.

SECI's Decision and Allegations

SECI's decision followed an investigation into a bid submitted by Reliance Power for a clean energy project. SECI found that the bank guarantee submitted as part of the bid was counterfeit. As a result, the state-owned agency barred the company from participating in future renewable energy tenders.

Reliance Power, which is primarily known for its coal power operations, is expanding into the renewable energy sector. The company intends to grow its presence in both the domestic and international clean energy markets.

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Company's Response and Legal Action

In response, Reliance Power stated that it had acted in good faith and was a victim of fraud and forgery. The company emphasized that it was not responsible for the alleged conspiracy involving a third party. It further clarified that a complaint had been filed with the Delhi Police’s economic offences wing against the third party involved in arranging the fake bank guarantee.

Broader Context for India's Clean Energy Goals

Reliance Power's legal challenge comes as India sets ambitious renewable energy targets. The country aims to reach 500 GW of renewable energy capacity by 2030 as part of its larger goal to achieve net-zero emissions by 2070. India’s current renewable capacity stands at around 154 GW.

In a separate development, Reliance Group Chairman Anil Ambani was banned from the securities market in August. He was also fined approximately $3 million for alleged fund diversion activities, according to India’s market regulator.

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Reliance Power’s push into the renewable energy sector is part of a broader trend where Indian companies are accelerating investments in clean energy. However, the ongoing dispute with SECI could complicate these ambitions as the company navigates the legal process.