Government of India Issues Penalty for Violation of DCR Norms under MNRE’s Solar PV Projects

The Government of India, through the Ministry of New and Renewable Energy (MNRE), has been encouraging domestic manufacturers of Solar PV cells and modules, by way of a policy of Domestic Content Requirement (DCR), wherever permitted by WTO.

However, apprehensions have been raised that the policy may be misused by way of mis-declaration and imported solar cells and modules may be used in DCR projects instead of domestically produced cell and modules.

In order to avoid misuse of policy, the government has decided that with respect to solar PV power projects under MNRE’s Schemes / Programmes, where DCR has been mandated in a WTO compliant manner, the following actions shall be taken by MNRE or any agency acting on behalf of MNRE for violation of DCR provisions prescribing use of domestically produced cells and modules.

  • Filing of criminal case under IPC 420 & related sections.
  • Blacklisting of developer for period of 10 years.
  • Forfeiting of relevant Bank Guarantee(s).
  • Disciplinary case against the officers of concerned CPSU/State Govt.
  • Any other action, in addition to those above.

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