After SEBI order, Gensol’s ₹3,000 cr projects in Gujarat under the State government scanner 

During FY25, Gensol Engineering secured had bagged over ₹4,000 crore worth of projects in Gujara
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PIXELFIT

A day after the Securities and Exchange Board of India (SEBI) came out with an interim order on Gensol Engineering and its promoters, and ordered a forensic audit into its operations, over ₹3,000 crore worth of projects secured by the company in Gujarat — including EPC contracts at Khavda Renewable Energy Park in Kutch — have come under the scanner of Gujarat government agencies.

“We are fully aware of the situation surrounding Gensol Engineering. We are closely monitoring it. We are also evaluating the situation internally and once the evaluation is completed, the management will decide on the necessary action in this regard,” a senior official from Gujarat Urja Vikas Nigam Ltd (GUVNL), the Gujarat government’s apex body involved in the generation, transmission, distribution and other activities, told businessline.

Solar ventures

During FY25, Gensol Engineering secured over ₹4,000 crore worth of projects in Gujarat, including a ₹1,350 crore standalone Battery Energy Storage System (BESS) project of 250 MWh, awarded by GUVNL in June 2024. The project, aimed at supplying electricity on an “On-Demand” basis to Gujarat State’s DISCOMS during peak and off-peak hours, also had a green-shoe option of awarding a second tranche of 250 MWh at the discretion of GUVNL at the same terms and conditions. Gensol had planned to execute the project in FY26 and mop up a total of ₹2,680 crore.

Apart from GUVNL, another State-run entity, Gujarat Power Corporation Ltd (GPCL), is also monitoring the developments related to Gensol Engineering, a senior State government official said. GPCL is the nodal agency for the development in Khavda RE park in Gujarat.

The other projects under the State government scrutiny include two large-scale solar projects bagged by Gensol in the third quarter. These comprise a 275 MW and a 245 MW Solar PV project at the prestigious Khavda RE park in Kutch. Valued at ₹1,062 crore and ₹968 crore respectively, both projects were expected to be completed within 18 months. The company had also bagged a contract from NTPC for a 225 MW solar project at Khavda, valued at ₹898 crore in Gujarat. These projects awarded in FY25 had boosted the company’s order book to ₹7,200 crore as of December 31, 2024.

Puneet Jaggi, executive director of Gensol, did not respond to calls or messages from businessline. A questionnaire emailed to the company, seeking its response to the SEBI probe and the company’s future remained unanswered. On Thursday, it was business as usual at Gensol’s office located at Makarba in Ahmedabad, where company representatives declined to share information in the absence of the promoters.

During the Vibrant Gujarat Summit in January 2024, Gensol Engineering had signed a Memorandum of Understanding with the Gujarat government, promising to invest ₹2,000 crore for setting up an Electric Vehicle (EV) manufacturing unit in Gujarat. The project, which was expected to generate 1,500 jobs, is yet to see any action on the ground, State government officials said.

In its recent interim order, SEBI has alleged that the “promoters were running a publicly listed company as if it were a proprietary firm” and the company’s funds were being used as “promoters’ piggybank”. SEBI has also alleged that the funds meant for EV purchase were diverted, and there is “prima facie evidence of blatant violation of corporate governance”. The company, as part of its regulatory filing, stated, “We will remain focused on our business objectives and are working diligently to maintain operational stability and performance.”

Published on April 17, 2025