Friday, May 18, 2013: A few months ago, the central government invited bids for 200 Mw of solar project. However, with the poor financial condition of the state, projects valuing to only 140 Mw were entertained. This comes as a big setback and the main reason were poor records of bidders like Uttar Pradesh Power Corporation and high rates from the Gujarat board.
This fact was revealed when only 140 Mw was proposed to be taken up by 9 firms out of the total technical purchase of 200 Mw. With nothing in its hand, the remaining 60 Mw project has to be abandoned as of now and the risk of this limit going down still exists. The evaluation process for the bidders meeting the technical criteria is still due and this could also be a major blow. The first tender for 200 Mw was floated last month as a result of the Solar Power Policy defined in the previous budgets.
In order to attract more bidders, the Government has already set special incentives for bids coming from the Bundelkhand region. The process would have determined the rates at which the companies were to sell power to the state government for the next 12 years after the completion of the projects.
Companies were highly interested for regions like Gujarat, which quoted a higher rate but they openly discussed on the financial vulnerability of investing in firms like Uttar Pradesh Power Corporation Limited. Gujarat is already offering a rate of Rs 15 / Kwh after the installations. According to a senior official, the Gujarat model is not too feasible considering the financial situation of the country.
