PSU Watch logo

| GUVNL withdraws subsidy, leaves 4,000 solar projects stranded |   | Govt may involve other PSUs promoters to participate in PLL, IGL open offer |   | Govt does not see any likely impact of Cairn Energy lawsuits on Air India disinvestment |   | Ladakh gets infra development corp to boost economy in the region |   | Cabinet approves PLI scheme for specialty steel, industry welcomes |  

Tata Power subsidiary wins Gujarat’s 1,000 MW solar power project

PW Bureau

Apart from Tata Power, state-owned GIPCL was the only other bidder bid for 250MW and 50MW respectively at a tariff of Rs 2.75 per unit

Bengaluru: Tata Power Renewable Energy Ltd, a subsidiary of the country’s largest power generator Tata Power, has won 1,000 MW of solar projects at an auction conducted by Gujarat. The projects will be built at Dholera solar park. Apart from Tata Power, state-owned Gujarat Industries Power Company Ltd (GIPCL) was the only other bidder bid for 250MW and 50MW respectively at a tariff of Rs 2.75 per unit.

Tata Power was chosen for the project through a draw of lots because Gujarat Urja Vikas Nigam Limited (GUVNL) will be allotting only 250MW.

No takers in the first two rounds

Gujarat had invited bids for the said auction three times but had found no takers in the first two rounds. The lukewarm response was mainly on account of the ceiling tariff being set at Rs 2.75 per unit. This, bidders said, was unviable and the GUVNL was unwilling to move it up any further.

Power companies said that the tariff was unreal because of the challenges involved in the construction of the projects due to the terrain. They expected the cost of construction to be on the higher side.

Developers put off by Gujarat’s track record

Power companies have turned reluctant to the auctions conducted by Gujarat because it had earlier cancelled the results of a solar auction held for 700MW of projects to be constructed at Raghanesda solar park because the state felt tariffs quoted were too high. The auction took place for the second time last month. In March last year, the state had cancelled another 500 MW solar power auction at which the lowest price reached was Rs 2.98 per unit.