GPCB Closure Direction for Solar Cell Plant at Navsari Revoked Before It Took Effect
GPCB issued a Closure Direction dated January 28, 2026 for the solar cell plant at Degam, Chikhli, Navsari.
By ScoutQuest · · 2 min read
- Interim EDC paid
- ₹9,00,000
- Bank guarantees furnished
- ₹8,00,000
- Revocation extended
- extended by six months on June 17, 2026
What the regulator did
The Gujarat Pollution Control Board, Unit Head – Navsari, issued a Closure Direction dated January 28, 2026 under Section 33A of the Water (Prevention and Control of Pollution) Act, 1974. It covered the company's solar cell manufacturing facility at Village Degam, Taluka Chikhli, District Navsari, Gujarat.
- The direction was to take effect 15 days from its date.
- It required prohibition of manufacturing activity and closure of operations at the facility.
Why it was issued
The direction followed an inspection of the facility by GPCB on January 6, 2026 under Section 23 of the Water Act. In that inspection, GPCB recorded non-compliance with the Water Act and with the conditions of the Consolidated Consents and Authorisation (CCA).
What the company did and what followed
- The company undertook remedial measures.
- It paid interim Environmental Damage Compensation (EDC) of ₹9,00,000.
- It furnished bank guarantees aggregating ₹8,00,000.
- By order dated February 11, 2026, GPCB revoked the Closure Direction for a period of three months, and this came before the date on which the direction was to take effect.
- Because of that revocation, the Closure Direction did not take effect, and there was no disconnection of power or water supply to the facility.
- After a further inspection on May 26, 2026, GPCB by order dated June 17, 2026 extended the revocation for a further six months, subject to conditions including compliance with the CCA by December 2026.
- The company's application dated May 8, 2026 for permanent revocation is pending with GPCB.
Financial bearing, in the company's words
The update states there is no material impact on the financial position or operations of the company except to the extent of the EDC and the bank guarantee, as of now.
On the disclosure itself
The Closure Direction and the subsequent orders were received at, and dealt with by, the facility's operations and environment teams. The company regrets the delay in disclosure and says it has strengthened its internal mechanism for escalation of communications from regulatory and statutory authorities, received at any of its locations, to the Compliance Officer. It has also reiterated its commitment to maintain high standards of environmental compliance and will disclose further developments in this matter.
What this means for a retail reader
- A closure direction is a serious regulatory step, but here it never became operative because it was revoked before its effective date.
- The measurable cost disclosed so far is the ₹9,00,000 interim EDC and ₹8,00,000 in bank guarantees.
- The matter is not fully closed: the revocation runs on extensions, the latest for six months with a CCA compliance condition by December 2026, and the request for permanent revocation is still pending.
- The company itself has acknowledged a delay in informing the exchanges about the development.
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More numbers
- Interim Environmental Damage Compensation paid₹9,00,000
- Bank guarantees furnished₹8,00,000
- Time from direction date before it was to take effect15 days
- Period of first revocation of the Closure Directionthree months
- Further extension of the revocationsix months
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