Demonetization has hit solar power tenders in Tamil Nadu with many developers unable to put down large volumes of cash needed to purchase the land required. Out of 500MW for which Tamil Nadu Generation and Distribution Corporation (Tangedco) floated tenders early this month, 20 bids for only 116MW have been received.
For presenting a bid for setting up a solar power project in Tamil Nadu, a company has to own land in its name. The tender was floated by Tangedco on October 21. Based on the Tamil Nadu Electricity Regulatory Commission(TNERC) order, the tariff was fixed at Rs 5.10 per unit.
In the last few years, almost all states which went for tenders were able to bring down the tariff. Last year, Rajasthan was able to get solar power bids at Rs 4.34 per unit.
Tamil Nadu, which presently leads in solar power capacity with 1,491MW, will likely fall short of its renewable power target this year.
By Baishakhi Dutta
