PM-KUSUM cut derails Gujarat Renewable energy tenders
Renewable energy tenders in Gujarat’s farm-solar segment have been cancelled after MNRE reduced the state’s PM-KUSUM Component-A sanctioned capacity. The allocation first fell from 500 MW to 300 MW through an office memorandum dated 23 December 2025, and then to 175 MW on 3 February 2026.
Uttar Gujarat Vij Company and Paschim Gujarat Vij Company had run reverse auctions for decentralised solar plants under the Commission’s May 2025 framework. The tariff ceiling was Rs 2.95 per unit. Both discoms then approached GERC for tariff adoption, but withdrew the petitions after MNRE refused to restore additional capacity.
GERC allowed unconditional withdrawal of petitions 2601 and 2602 of 2026. EnergylineIndia.com records this as important for Power sector reforms because the regulatory process was overtaken by a central allocation change. Renewable energy tenders under Component-A cover 500 kW to 2 MW plants on farmers’ land, with discoms as buyers. Renewable energy tenders bidders did not receive letters of award. Renewable energy tenders refund issues were left to discom administrative decision. Renewable energy tenders therefore carry a policy risk beyond price discovery.
