India’s Ministry of Power has proposed a game-changing regulation to speed up the adoption of clean energy by requiring the country’s power distribution companies (discoms) to act swiftly after signing agreements to buy electricity from renewable sources. The draft rule, dated June 25, 2025, is designed to address persistent delays that have hampered the rollout of solar, wind, and other renewable energy projects across the nation.
Under the proposed rule, distribution companies must seek formal approval from the relevant regulatory commission within one month of finalizing contracts with clean energy suppliers or intermediaries. This is a significant shift from the current process, where approvals can languish for months, stalling project progress and investment.
India has set an ambitious goal of achieving 500 gigawatts (GW) of non-fossil fuel energy capacity by 2030 nearly three times its current capacity. As of June 2025, the country has already reached 476 GW of total installed power, including 235.7 GW from non-fossil sources, but significant hurdles remain.
The new rule comes as India’s renewable sector faces mounting pressure to scale up quickly. The government has already extended deadlines for some solar projects due to module shortages, transmission bottlenecks, and slow tender processes. Industry bodies have also called for more flexible transmission fee waivers and milestone-based eligibility to ensure only committed developers benefit from policy incentives.
Fast-tracking regulatory approvals and simplifying land and transmission rules are critical for India to meet its 2030 targets and ensure energy security. The Ministry of Power’s move is seen as a vital step to clear the path for new investments and project execution.
By reducing approval times, developers can move from contract to construction much faster. Clear timelines and penalty waivers for regulatory delays will make the sector more attractive for domestic and global investors. Faster clean energy adoption is essential for India’s decarbonization commitments and economic growth.