ARTICLE
2 September 2026

Guidelines For National Security Clearance Of Border Energy Projects

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BTG Advaya

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BTG Legal is an Indian law firm with particular focus on: defence; industrials; digital business; energy (renewables and nuclear); retail; transport (railways and electric vehicles); and financial services. Practices include corporate transactions, commercial contracting, public procurement, private equity, regulatory compliance, employment, disputes and white-collar crime.
India's Ministry of Home Affairs has introduced mandatory security clearance guidelines for renewable energy projects in sensitive border areas, requiring developers to navigate complex approval processes...
India Energy and Natural Resources
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India is unique in many ways and is accelerating its renewable energy build-out as it works towards achieving 500 GW of non-fossil fuel capacity by 2030. Amid evolving global tensions, border disputes, and rising domestic demand for clean energy, India has seen unprecedented growth in non-conventional energy projects over the last decade. 

As a peninsula, India has 15,106.7 km of land borders and a coastline of 7,516.6 km. The nodal ministry has received numerous applications regarding the suitability of setting up solar, wind, and hybrid energy projects in border areas, where project development may raise national security concerns. 

To address national security concerns, clarify the approval process, and support ease of doing business, the Ministry of Home Affairs ("MHA") has published the "Guidelines for obtaining National Security Clearance for Solar/Wind Projects in Border Areas" ("Guidelines"). The Guidelines prescribe a uniform, mandatory clearance process for solar, wind, and hybrid energy projects in India’s sensitive border regions. Although dated July 3, 2026, the Guidelines were recently published and introduce security clearance requirements for renewable energy developers. 

  1. Jurisdiction and Scope 

These Guidelines apply to all solar, wind and hybrid power projects proposed in Sensitive Areas (as defined below) along the Line of Control (“LOC”), the Line of Actual Control (“LAC”), and the International Border. 

Key geographic definitions under the Guidelines include: 

  • Sensitive Area: Areas within 50 kilometres (“km”) of the LOC, LAC, or International Border. This includes areas within 20 km of the International Border, for which a separate No Objection Certificate (“NOC”) will be required from the Ministry of Defence (“MoD”). 

  • Restricted Area: Areas within 1 km of the LOC, LAC, or the International Border. The 1 km area will be strictly restricted; no project activity will be permitted. 

* Projects that have already received security clearance will not be required to reapply under these Guidelines.  

  1. SOP for Obtaining Security Clearance 

Under the Guidelines, the Standard Operating Procedure (“SOP”) streamlines the application process and assigns administrative responsibility to the Ministry of New and Renewable Energy (“MNRE”): 

  • Centralised Application: Developers must submit applications for all solar, wind and hybrid energy projects exclusively to the MNRE. State Governments and project proponents are explicitly prohibited from applying directly to the MHA or the MoD. 

  • Inter-Ministerial Forwarding: MNRE will forward the proposal, along with the State Government's in-principle approval for land allotment (specifying latitude and longitude), to the MHA for security clearance and to the MoD for an NOC. 

  • Timeline: As far as possible, the proposals received will be disposed of by the MHA within 60 days. Projects that already received security clearance from the MHA before the issuance of these Guidelines, or those with an NOC from the MoD, will not be required to re-apply. 

  • Foreign Investment: If the proposed project in the Sensitive Area involves foreign investment, a separate application to the Department for Promotion of Industry and Internal Trade (DPIIT) under the FDI Policy is required. 

C. Critical Conditions and Financial Obligations 

While the Guidelines aim to support renewable energy expansion, they impose substantial security and infrastructure compliance obligations. The Project developers must carefully evaluate these requirements, as they lead to cost increases and operational liabilities: 

  • Security Infrastructure Costs: As a major financial and operational obligation for developers, the proposal must include comprehensive security measures, such as anti-drone systems. The Central Industrial Security Force (CISF) or State Police will operate this equipment, while the project proponent will bear the cost. Although privately funded, the equipment will be operated by the State, so ownership, maintenance liability, and operational control are uncertain and will need to be addressed contractually or clarified. 

  • Defence infrastructure adjustments: Project roads may need to be built to a standard that permits emergency use by Border Security or the Armed Forces. The Guidelines state that, while implementing the proposed scheme, "adequately wide roads" should be considered for emergency use. Since "adequately wide" is undefined, road specifications are likely to be clarified during the clearance process. 

  • Height caps on civil infrastructure: Administrative blocks, central control rooms, staff housing, godowns and similar support infrastructure in sensitive areas are capped as follows: 

Distance from LOC/LAC/International Border 

Maximum height of permitted structure 

From 1 km to 8 km 

Up to 3 meters 

From 8 km to 20 km 

Up to 5 meters 

From 20 km to 50 km 

Up to 15 meters 

* Helpfully, this will not apply to project infrastructure such as wind turbines etc. 

  • Siting Restriction: It seems that any standalone accommodation or hotels, which could attract crowds or where security is lax, may not be allowed in the area. Any such facility must be located at least 5 km from the border, and cafeterias "should be located within the plant premises". Land allocation must be structured so that construction does not extend "over a long distance parallel to the international border". 

  • Labour and Staffing Restrictions: Developer operations will be tightly controlled. "The applicant should not engage engineers/staff/employees/labour from land border countries, especially Pakistan/Bangladesh/China, for project implementation without the permission of the Central Government." Additionally, employees "should be pre-verified before entering the field". A dedicated police post must be established or attached during construction to monitor workers, and foreign nationals entering the area must be monitored. 

  • Land Restrictions: The applicant must not transfer land to any foreign company without prior Central approval and security clearance from the MHA. This restriction may affect downstream asset sales, InvIT transfers, and change-of-control transactions. 

Our parting thoughts…. 

The newly published Guidelines mark a significant regulatory shift for India’s border-area renewable energy sector. By balancing ease of doing business with national security imperatives, the government has established a clearer roadmap for obtaining clearance. However, requirements that developers bear the cost of comprehensive security systems, such as anti-drone equipment, and comply with infrastructure mandates, such as wider emergency roads, may materially affect project feasibility and capital expenditure models. Renewable energy developers considering border-region projects should factor in these security compliance costs and staffing restrictions in early-stage financial planning to avoid delays and cost overruns. 

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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