Summary:
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## Clarification on Renewable Generation Obligation (RGO)**
**Issued by:** Ministry of Power, Government of India
**Date:** 6 August 2025
**Reference:** Clarification to Ministry of Power’s Resolution dated 27 February 2023
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### **Background**
* The original **RGO mandate** requires that any **coal/lignite-based thermal generating station** with a **Commercial Operation Date (COD) on or after 1 April 2023** must:
* Establish a **minimum capacity of Renewable Energy (RE) generation sources**, **or**
* Purchase and supply RE equivalent to such capacity.
* Compliance timelines:
* **COD between 1 April 2023 and 31 March 2025:** RGO as per the earlier resolution.
* **COD on or after 1 April 2025:** Must comply with **RGO of 40%** from COD.
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### **Clarification Issued**
In response to representations seeking clarification on **RGO compliance through subsidiaries**, the Ministry clarifies:
1. **RGO Compliance via Subsidiaries:**
* RE generated or procured and supplied by a **wholly-owned subsidiary** of:
* The generating company, or
* Any of the companies of a joint venture (JV) company
will be **counted towards RGO compliance** for the main generating company or JV.
2. **Voluntary Nature of RGO Implementation:**
* Establishing the minimum RE capacity or purchasing and supplying RE equivalent to such capacity, as mentioned in the notification, is **voluntary**.
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### **Recipients**
The clarification was sent to:
* Principal Secretaries/Secretaries in charge of Energy/Power in all States and UTs.
* CMDs and Heads of all CPSUs.
* DG, APP, and IPPAI.
* Other stakeholders including CEA, CERC, SERCs, senior officials of the Ministry of Power.
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### **Key Takeaways**
* **Flexibility introduced:** Companies can fulfill RGO via wholly-owned subsidiaries or JV partners’ subsidiaries.
* **Non-mandatory:** Although earlier framed as a mandate, this clarification states that meeting the RE capacity requirement is **voluntary**.
* **Applies to new thermal plants:** Especially those with COD from April 2023 onwards, with higher targets for COD after April 2025.
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