As per an article in Economic Times, the center has asked the appellate tribunal to allow MNRE to be a party in a petition jointly filed by wind associations IWEA and IWTMA. This petition filed by the wind associations in January submits that all state commissions have failed to enforce RPO regulations in their respective states. The center while filing the request to APTEL, has highlighted that despite writing repeatedly to all SERCs and distribution companies, none have complied with their envisioned RPO targets. Owing to these delinquencies on the part of SERCs, the ministry is forced to take a stricter route.

The move comes in the backdrop of poorly performing REC markets which are struggling with lower demand. The REC inventory is already flooded with more than 30 lac RECs. Off late, both solar and non-solar RECs have remained at floor. Already majority SERCs have started coming up with stricter compliance regime which mostly, mandate all obligated entities of the state to comply with all backlogs by the end of FY14.  Nevertheless, the demand of RECs in subsequent trading sessions left in FY14 is expected to rise.