New Delhi: In the reverse auction for 1.2 GW ISTS-connected solar tender floated by NTPC Limited, O2 power, Azure Power, Tata Power and AMP Energy have emerged as winners. While O2 Power was awarded a capacity of 400 MW, Azure Power won 300 MW, Tata Power got 370 MW and AMP Energy won 100 MW. PSU Watch had earlier reported in July that the 1.2 GW solar tender floated by NTPC had received an overwhelming response and had received bids for about 1.7 GW.
The tender auction was conducted on Thursday and it saw winning tariff of Rs 2.43/kWh. The minimum CUF condition for this tender is 19 percent and the commissioning timeline is 24 months.
The last two auctions in the solar power sector — one conducted by SECI for 2 GW which saw a record-low tariff of Rs 2.36/ kWh and the one conducted by NTPC for 1.2 GW of solar projects— have seen aggressive bidding by RE players. The low tariff trends can be the desperate situation wherein developers are looking to take advantage of the current situation wherein only safeguard duty of 14.9 percent is applicable. Though there is highly likely chance of double duties in form of safeguard duty as well as Basic Custom Duty (BCD) of 20-25 percent due to the ongoing China border issues, said JMK Research in a report on Thursday.
With the win, O2 Power, which is a new entrant in the RE market, will have a portfolio of 780 MW of solar projects. AMP Energy, which has also shown aggression in the recent tenders and is looking to build its portfolio, will now have a portfolio of 300 MW of solar projects with this win.
Azure has also won a substantial capacity after securing a win in SECI's manufacturing tender in December 2019, under which it is set to build 4 GW of solar projects (1 GW by 2022 and rest by 2025).
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