Where the risk sits
Grid access, contract signing and equipment rules drive most project risk. The six items below are the compliance watch-outs the brief identifies for foreign investors in Indian renewables. Recent policy changes are on the recent changes page.
Power sale agreements lag awards
A letter of award does not guarantee a PPA: the PPA is signed only once the implementing agency has a power sale agreement with a buying utility. Unsigned PSAs reached 42 GW by late 2025, and letters of award for unviable projects may be cancelled (SBI sector report, Apr 2026). Confirm the PSA before ordering equipment.
Curtailment where the grid lags
Where inter-state transmission lines lag new generation, projects may run on temporary General Network Access. CRISIL, cited by SBI (April 2026), sees over 35 GW of renewable capacity at severe curtailment risk in FY2027 as projects rely on temporary GNA. Price curtailment into revenue forecasts for any project without firm access.
ISTS waiver depends on dates
Solar and wind commissioned after 30 June 2025 get a reduced inter-state transmission charge waiver, tapering 25% a year to June 2028; projects commissioned between July 2026 and June 2027 get 50%. A slip in commissioning can move a project into a lower band. Price transmission charges into bids. Co-located battery storage commissioned by June 2028 and pumped storage awarded by June 2028 keep a waiver, as do green hydrogen (December 2030) and offshore wind (December 2032).
ALMM lists for cells and wind
ALMM List-II (cells) was issued on 31 July 2025, and ALMM-Wind covers turbine components such as blades, towers, generators and gearboxes. Different tenders require different lists. Check which list each tender requires, and confirm that modules, inverters and batteries also hold BIS registration.
Land-border ownership
Beneficial ownership above 10%, or control, by a person from a country sharing a land border with India needs government approval (Press Note 2 of 2026). Holdings of up to 10% without control are automatic with prior reporting. The test runs through the whole ownership chain, so co-investors and fund partners in a platform need screening too. See land-border investors.
Nuclear remains closed to FDI
SHANTI Act licences go to companies incorporated in India, and FDI in atomic energy is still prohibited (RBI, June 2026). An FDI policy approved by the Atomic Energy Commission is in inter-ministerial consultation (PIB (DAE), 1 Apr 2026; Swarajya, 2026). Foreign participation is limited to what the FDI rules permit until a policy is notified.
Related points from other pages
Offshore wind has no live award
Both 2025 tenders under the ₹7,453 crore offshore wind VGF scheme were cancelled in August 2025 for want of bids (IMPRI, 30 Aug 2026). See central incentives.
No 15% tax rate for new plants
The 15% regime for new manufacturing companies is closed to companies starting production after 31 March 2024. New generation and equipment companies typically pay 25.168% effective under the concessional regime (s.200). See tax and zones.
FEMA clock starts with the money
FEMA filings run from the first investment, not from commissioning: shares must be issued within 60 days of receiving funds, and Form FC-GPR filed within 30 days of issue. See the set-up roadmap.
What to check next
- For each tender, confirm whether a PSA has been signed with a buying utility before committing to equipment orders.
- Ask CTUIL whether access will be firm or temporary GNA, and stress-test revenue for curtailment.
- Model the ISTS waiver at the band your realistic commissioning date falls in, not the band you hope to hit.
- Check the ALMM list and BIS registration for every module, cell, inverter, battery and turbine component in the bill of materials.
- Map every owner in the chain for land-border beneficial ownership before signing a platform or co-investment.