Ceiling on Solar Tariff - SECI would bring future bids as per the market condition and requirements.
Updated: Dec 10, 2018
Ministry of New & Renewable Energy, Government of India vide its letter dated 24 Aug, 2018 directed Solar Energy Corporation of India (SECI), an arm of MNRE that SECI may bring future solar bids in lot of 1200 MW with no upper cap and the minimum bid size would be 50 MW. The tender would be issued immediately as NTPC solar bid has been finalized at tariff of Rs. 2.59/2.60 (including safeguard duty).
Further, it was also directed that in the RfS, the maximum permissible tariff includes safeguard duty be fixed at Rs. 2.68 per unit with the condition that if later it is found that no safeguard duty has been paid by the bidder on the modules used in the project than the bid will be reduced by Rs. 0.18. for the purpose of such bids, no pass through benefit would be available to the developer.
Now, MNRE again vide its letter dated 06 December, 2018 directed to SECI saying that the point of the said letter of 24 Nov, 2018 stands withdrawn and SECI may take steps to bring out bids as per the market condition and requirements.
Industry specialist observed that the issue of ceiling on solar projects has been resolved now, and there is no upper cap in solar projects bids, as founding of good quality land for large size projects is quite hard.
The government will keep imposing a tariff ceiling on solar projects, Secretary, MNRE Shri Anand Kumar said at a CII organised conference on “Green Power 2018”.