SEBI Clarifies PPP Status for Renewable Energy InvIT Projects

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  • Last Updated on 29 May, 2026

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PPP Projects Under InvIT Regulations

Informal Guidance No. HO/17/16/11(1)2025-DDHS-POD2 I/5333/2026, Dated: 20.02.2026

The Securities and Exchange Board of India (SEBI) has issued informal guidance clarifying whether renewable energy projects awarded through tariff-based competitive bidding with government entities acting as offtakers would qualify as Public-Private Partnership (PPP) projects under the SEBI (Infrastructure Investment Trusts) Regulations, 2014.

The clarification was issued in response to a query raised by a company seeking regulatory guidance under the InvIT framework.

1. Query Raised Before SEBI

The company sought clarification on whether renewable energy projects:

  • Awarded through tariff-based competitive bidding; and
  • Having government entities as offtakers

could be treated as PPP projects under the InvIT Regulations.

The issue related to interpretation of the definition of PPP project under Regulation 2(1)(zm) of the SEBI (Infrastructure Investment Trusts) Regulations, 2014.

2. Renewable Energy Projects May Qualify as PPP Projects

SEBI clarified that renewable energy projects undertaken by Special Purpose Vehicles (SPVs) of an InvIT may qualify as PPP projects under the regulations, subject to specified conditions.

The clarification provides regulatory certainty regarding classification of such infrastructure assets under the InvIT regime.

3. Conditions for Qualification as PPP Project

SEBI stated that renewable energy projects may be considered PPP projects where they are undertaken:

  • Pursuant to open competitive bidding; or
  • Under a Memorandum of Understanding (MoU) with public entities

Further, the projects must involve government or public sector participation in the manner contemplated under the InvIT framework.

4. Applicability Under Regulation 2(1)(zm)

The clarification has been issued with reference to Regulation 2(1)(zm) of the SEBI (Infrastructure Investment Trusts) Regulations, 2014, which defines the meaning and scope of a Public-Private Partnership project.

Accordingly, qualifying renewable energy projects undertaken through eligible SPVs of an InvIT may be treated as PPP assets for purposes of compliance under the InvIT framework.

5. Objective of the Clarification

The informal guidance aims to provide interpretational clarity and facilitate inclusion of eligible renewable energy assets within the InvIT ecosystem.

The clarification may support greater participation of renewable infrastructure projects in InvIT structures while aligning eligibility assessment with competitive bidding and public participation requirements under the regulations.

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Author: Taxmann

Taxmann Publications has a dedicated in-house Research & Editorial Team. This team consists of a team of Chartered Accountants, Company Secretaries, and Lawyers. This team works under the guidance and supervision of editor-in-chief Mr Rakesh Bhargava.

The Research and Editorial Team is responsible for developing reliable and accurate content for the readers. The team follows the six-sigma approach to achieve the benchmark of zero error in its publications and research platforms. The team ensures that the following publication guidelines are thoroughly followed while developing the content:

  • The statutory material is obtained only from the authorized and reliable sources
  • All the latest developments in the judicial and legislative fields are covered
  • Prepare the analytical write-ups on current, controversial, and important issues to help the readers to understand the concept and its implications
  • Every content published by Taxmann is complete, accurate and lucid
  • All evidence-based statements are supported with proper reference to Section, Circular No., Notification No. or citations
  • The golden rules of grammar, style and consistency are thoroughly followed
  • Font and size that's easy to read and remain consistent across all imprint and digital publications are applied