Annulled: NTPC Forced to Cancel 250 Megawatt October 2017 Solar Auction

Anand Kumar who is the Secretary in Ministry of new and renewable energy confirmed that the solar auction had been annulled.

Solar auction has been annulled forcefully. NTPC has been forced to cancel the result of its 250 mw solar auction held in October last year, which was won by Azure Power quoting a tariff of Rs 3.14 per unit.

The auction was held under the domestic content requirement (DCR) category, where the winning developer has to mandatorily source solar panels and modules from local manufacturers. It had to be cancelled because it would have fallen foul of WTO norms, as per the close sources said.

Anand Kumar who is the Secretary in Ministry of new and renewable energy confirmed that the auction had been annulled. “We will do the tender again,” he said. “Maybe this time the winning tariff will be even lower.” NTPC did not comment on the matter.

The auction had to be cancelled because the tender documents had mentioned that the power was to be sold to New Delhi Municipal Corporation (NDMC). “This would have violated WTO rules,” said a source close to the development. “India could have been fined heavily, if the government had not noticed, and directed NTPC to revoke it. But the auction can still be held under the ‘developer’s mode’.”

Source: ET