WAAREE Energies Limited announced that the Gujarat Pollution Control Board (GPCB) has revoked a closure direction issued for its solar cell manufacturing facility in Degam, Gujarat. The initial direction, effective from January 28, 2026, was issued due to alleged non-compliance with environmental regulations. While a temporary revocation was granted, the company has applied for permanent revocation. The financial impact is limited to interim compensation and bank guarantees.
GPCB Revokes Closure Direction for Degam Facility
WAAREE Energies Limited has disclosed that the Gujarat Pollution Control Board (GPCB) has issued a revocation order concerning a closure direction for its solar cell manufacturing facility located in Degam, Taluka Chikhli, District Navsari, Gujarat. The initial closure direction, dated January 28, 2026, was issued under Section 33A of the Water (Prevention and Control of Pollution) Act, 1974, and was set to take effect 15 days from its date. This direction mandated the prohibition of manufacturing activities and closure of operations at the facility.
Background and Remedial Actions
The closure direction followed an inspection on January 6, 2026, where GPCB noted non-compliance with the Water Act and conditions of the Consolidated Consents and Authorisation (CCA). WAAREE Energies undertook remedial measures, paid an interim Environmental Damage Compensation (EDC) of ₹9,00,000, and furnished bank guarantees aggregating ₹8,00,000. Subsequently, GPCB revoked the closure direction by an order dated February 11, 2026, for a period of three months, meaning the direction never officially took effect. Power and water supply to the facility remained uninterrupted.
Extension of Revocation and Future Steps
A further inspection on May 26, 2026, led GPCB to extend the revocation of the closure direction by another six months, through an order dated June 17, 2026. This extension is conditional upon continued compliance with the CCA, valid until December 2026. WAAREE Energies has submitted an application dated May 8, 2026, for the permanent revocation of the direction, which is currently pending with GPCB.
Financial and Operational Impact
As of the announcement, there is no material impact on the financial position or operations of the Company, other than the costs associated with the EDC and the Bank Guarantee. The company has also acknowledged a delay in this disclosure and has enhanced its internal communication mechanisms for regulatory notices.
Source: BSE
