500MW Solar Auction Cancelled in Gujarat Over Costly Bids

The successful bidders include Kalathia Engineering and Construction, Gujarat State Electricity Corporation Limited (GSECL), ACME Solar Holdings and Azure Power.

Auction conducted on March 28 for 500 MW has been cancelled by the state owned utility Gujarat Urja Vikas Nigam Limited (GUVNL). The tariffs quoted by the bidders, considered to be too high, is the reason behind the cancellation.

The successful bidders include Kalathia Engineering and Construction, Gujarat State Electricity Corporation Limited (GSECL), ACME Solar Holdings and Azure Power. The bids quoted by the companies are Rs 2.98 per unit for 50MW, Rs 3 per unit for 150MW, Rs 3.06 per unit each for 100MW and 200MW, respectively.

However, there were two auctions of 500 MW each in September 2018 and May 2017 where the price rate 2.65 per unit and all-time low 2.44 per unit. The auctions were carried out by Gujarat Urja Vikas Nigam Limited and Solar Energy Corporation of India (SECI).

The decision of cancellation by GUVNL comes after the ministry of new and renewable energy amended the norms of bidding for solar projects.

Under the ‘change in law’ provision, the ministry clarifies, that all indirect taxes can be a pass-through.

The potential bidders were informed in advance by GUVNL that additional costs were not liable to be passed through.

Source: TNN