What made Adani and Reliance pick this desert area was easy availability of vast land, fast-track regulatory clearances such as environment clearance to support mega projects, and proximity to ports such as Mundra and Kandla for exports.
Easy land access
There has been a growing demand for putting new renewable energy projects near the India-Pakistan border in Gujarat and Rajasthan. The companies see that the turnaround time for operationalising large solar projects, including land availability, is quicker. Land availability remains the biggest challenge for the renewable projects, and the government is now focusing on making land banks.
"The land on the border is barren, vast, and with no interference. This makes it easy for the companies to deploy large capacity without getting into legal hurdles over land acquisition," said a renewable energy player.
The two states have the largest renewable energy capacity deployment due to good solar and wind potential and state policies to push for renewable deployment. Rajasthan and Gujarat together contribute over 34% to India’s total renewable energy capacity. India’s installed renewable energy capacity stands at 288.58 GW as of 30 June 2026, comprising 162.15 GW solar, 57.44 GW wind, 57.24 GW hydro, and 11.75 GW bio‑power.
Home ministry cautions
The Ministry of Home Affairs (MHA) has issued guidelines introducing a blanket ban on such projects within 1 km of the international border and mandating security clearance for projects located up to 50 km away. This was due to a surge in applications for solar, wind and hybrid renewable energy projects in border areas.
Adani’s Khavda project strategic vulnerability was highlighted in May 2025, when drone intrusions were recorded during Operation Sindoor.
The home ministry said that renewable energy projects in border areas could have national security implications. The guidelines impose restrictions on foreign participation and staffing, stating that the applicants should not engage engineers, staff, employees, or labour from Pakistan, Bangladesh, and China without the MHA’s permission.
Under the guidelines, all solar, wind and hybrid energy projects proposed within 50 km of the Line of Control (LoC), Line of Actual Control (LAC) and the international border will require security clearance from the MHA. Projects located in the first kilometre from these borders have been declared a “restricted area”, where no project activity will be permitted.