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Manufacturing linked Solar tenders not attractive for developers

November 15, 2018 02:21 PM

Tagged Sector(s) : Renewable

SECI has floated 10 GW of solar tender linked with manufacturing of solar equipment and has also capped the solar tariff to Rs. 2.85 per unit with maximum allowed tariff of Rs. 2.93 per Unit. This tender is floated in apprehension by government that developers will venture in manufacturing business.

Developers have disconcerted that capping of tariff makes the bid unviable and participation in tender would force them to enter a manufacturing business which is linked with untold risk and uncertainty like changing technology and risk of imports from china in future years. 

Though government has tweaked tender to make it more attractive by including the tariff rates, extending project execution timeline but the developers are on a different outlook that tender design is defective and is uncompetitive in India. To  make projects viable under the tender government should allow a higher tariff else the project may invite a low participation and tender could be cancelled if the response to bid submission remains tepid.

Article By:
Amit Sharma

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