MNRE Clarifies Approved List of Models and Manufacturers Compliance for Solar Procurement

On 6 February 2026, the Ministry of New and Renewable Energy issued clarificatory instructions concerning compliance with the Approved List of Models and Manufacturers framework applicable to government backed solar procurement. The clarification addressed concerns raised by project developers regarding module sourcing timelines, grandfathering provisions, and consequences of non compliant procurement.

The Ministry reiterated that solar modules deployed in projects bidding under central or state schemes must be sourced from manufacturers listed in the Approved List as of the date of supply. Transitional relaxations previously granted during supply chain disruptions are no longer presumed automatic.

Developers have expressed concern that strict enforcement may affect commissioning timelines, particularly where module supply contracts were executed prior to changes in listing status. Financial institutions funding solar projects are also reassessing compliance risk exposure.

Legal Analysis

The regulatory authority for the Approved List framework derives from Section 3 of the Electricity Act, 2003 read with the National Electricity Policy and renewable energy promotion mandates. Additionally, procurement guidelines issued under Section 63 of the Electricity Act govern tariff based competitive bidding processes.

Non compliance with procurement conditions may trigger contractual consequences under power purchase agreements, including delay damages or termination risk. From a public law perspective, deviation from notified procurement conditions may expose projects to challenge on grounds of arbitrariness or violation of bidding guidelines.

The February 2026 clarification reinforces that eligibility conditions form part of the bid architecture and cannot be retrospectively diluted absent express governmental notification. Lenders must therefore integrate regulatory compliance representations within financing documentation. Developers should incorporate regulatory change clauses in supply agreements to mitigate listing related risk.

The development underscores the increasing regulatory formalisation of domestic manufacturing promotion within renewable procurement structures.