Rising steel costs, weak bidder interest prompt rethink; focus shifts to hydro and solar manufacturing.

Centre Reconsiders Tenders for 1 GW Wind Energy Projects.

The government is re-evaluating its plan to float tenders for 1 GW wind energy projects amid concerns over muted investor interest and rising input costs, a senior official said. Although tenders for the capacity are ready, stakeholder consultations suggest enthusiasm may not match earlier levels. A key factor is the sharp rise in steel prices, which has significantly increased project costs, as steel is a critical component in both onshore and offshore wind towers. To revive investment in the sector, the Ministry of New and Renewable Energy is in discussions with the World Bank and several think tanks to develop a roadmap for strengthening the wind energy ecosystem. The official also said the government is working on a new scheme to promote small hydro projects, with a policy for projects up to 25 MW expected to be launched soon. Additionally, financial support is being explored for manufacturing ingots and wafers, key components used in solar modules, to strengthen domestic supply chains.