Gensol won many PSU contracts. Here’s what happens to them-OxBig News Network

The Centre’s concerns arise from the fact that a significant share of  Gensol’s ₹7,000-crore order book comes from state-run firms. NTPC Ltd, Damodar Valley Corp. Ltd (DVC) and The Singareni Collieries Co. Ltd have placed large orders with the company led by the Jaggi brothers, accused of fund diversion and forgery by the market regulator. The orders pertain to solar engineering, procurement and construction (EPC) as well as battery energy storage systems (BESS). 

“The Centre is looking into the Gensol issue and every aspect of it, including the renewable EPC projects awarded by public sector undertakings,” said one of the two people mentioned above.

The Sebi interim order on Gensol had pointed to the company’s critical infrastructure contracts, and how financial discipline and reputation were necessary to execute them. 

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The second person said that though the Union ministry of new and renewable energy (MNRE), which oversees the functioning of IREDA, is overseeing the situation, it could consider rebidding the EPC contracts, if the completion of the projects by Gensol seemed unviable.

The MNRE move also seeks to prevent state-run energy sector financiers’ ₹1,000 crore-plus exposure to the cleantech firm from turning into bad debt. Indian Renewable Energy Development Agency Ltd (IREDA) and Power Finance Corp. Ltd have lent the firm about ₹663 crore and ₹350 crore, respectively.

The Union ministry of power, the nodal ministry for Power Finance Corp. (PFC), is also examining the matter and lapses by the country’s largest power sector lender.

Meanwhile, PFC on Tuesday said it has filed a complaint with the Economic Offences Wing (EoW) of the Delhi Police over the alleged filing of falsified documents by Gensol. The lender said it is exploring all possible options and the matter is also under investigation internally.

Mint earlier reported that PFC is exploring all options, including moving the company law court to recover loans to Gensol Engineering. 

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Queries mailed to both ministries remained unanswered till press time.

Widespread impact

The markets regulator’s 15 April interim order, which barred Gensol Engineering and its promoters—Anmol Singh Jaggi and Puneet Singh Jaggi—from the securities market, also noted the likely impact of the fund diversion and governance lapses on its EPC projects.

“While the fund diversion primarily occurred in the context of electric vehicle (EV) purchases intended for leasing to a related party, the risk it creates is neither isolated nor contained,” the Securities and Exchange Board of India (Sebi) warned in the order.  

“The company (Gensol) has a substantial order book, comprising critical infrastructure contracts awarded by government and public sector entities in the renewable EPC space. These contracts are not just capital-intensive, they also require strict financial discipline, timely execution, and reputational credibility to retain project flow and institutional trust,” it added.

And read | Not just investors, Gensol promoters took independent directors too for a ride

As of the December quarter 2024-25, the company’s unexecuted order book stood at around ₹7,000 crore, according to its investor presentation, which showed that it secured major solar EPC contracts totalling ₹2,928 crore in the third quarter itself. 

The company entered the BESS segment after winning 570MW/1,140MWh capacity projects in 2023-34.