UPPCL Issues Notice to Six Companies for Delaying the Installation of Solar Plant

UP Power Corporation Limited (UPPCL) has issued the ‘Procure Preliminary Default’ notice to six companies, seeking cancellation of their agreement with the New Energy Development Authority (NEDA).

The Uttar Pradesh government has issued notice to six private companies, including Adani Green Energy, for delay in setting up solar power plants in UP. The decision was taken after the companies did not set up solar power plants, despite entering into an agreement for it, two years ago.

UP Power Corporation Limited (UPPCL) issued the ‘Procure Preliminary Default’ notice to six companies, namely Adani Green Energy Ltd, Pinnacle Air Pvt Ltd, Awadh Rubber Prop, Madras Ilastomar Ltd, Sudhakar Infratech Private Ltd and Shastradhara Energy Private Ltd, seeking cancellation of their agreement with the New Energy Development Authority (NEDA).

In its statement, UPPCL said the state government got into an agreement with 15 companies in 2015 under the solar power policy of 2013. Of these, nine installed solar power plants with a total capacity of 135MW but six companies did not honour the agreement to install power plants with an aggregate capacity of 80MW each. As per the agreement, the units were to supply solar power at the cost of Rs 7.02 to Rs 8.60 per unit.

According to UPPCL, cost of solar panels reduced over time. The corporation cited a recent survey of Centre which said cost of solar power fell to Rs 2.44 per unit because of reduction in prices of solar panels. Under such circumstances, the companies may not be allowed to set up power plants as per the previous arrangement, the UPPCL spokesperson said.

Union ministry of new energy, through its letter on July 3, had asked the state government not to extend the deadline for installation of solar power projects.

Source: TOI