On 02.04.2026, the Bombay High Court passed an Order directing that no coercive action be taken against JSW Steel Limited (“JSW”) in relation to the Renewable Consumption Obligation (“RCO”) imposed by the Bureau of Energy Efficiency (“BEE”). The Order grants JSW important interim protection from immediate financial exposure, including costs of Renewable Energy Certificate (REC) procurement and potential penalties under the Energy Conservation Act, 2001.
The case raises a significant legal issue at the intersection of India’s energy laws. Following the Energy Conservation (Amendment) Act, 2022, the Central Government introduced the RCO framework for ‘designated consumers’, including large industrial players such as steel manufacturers. JSW has challenged this regime on the basis that it conflicts with the existing Renewable Purchase Obligation (“RPO”) framework under the Electricity Act, 2003, where regulatory authority rests with State Electricity Regulatory Commissions.
The outcome of this matter will have wide implications for energy-intensive industries such as steel, aluminium and cement. As currently structured, the RCO regime potentially overlaps with existing RPO obligations, creating regulatory uncertainty and additional compliance burdens.
This petition is among the first constitutional challenges to the RCO framework, and the High Court’s direction marks one of the earliest instances of judicial protection granted to industry participants under the new regime.
JSA’s team comprised of Abhishek Munot, Lead Partner along with Kunal Kaul, Partner; Samikrith Rao Puskuri, Principal Associate and Purvi Shrivastava, Associate.