Andhra Pradesh’s 6.4 GW solar tender gets bids from Adani Group, Torrent Power and NTPC

By: |
December 30, 2020 6:30 AM

The state government had earlier started building a 1,000 MW solar park in Kadapa, through a joint venture with the Centre, but has not allotted lands or awarded contracts for work on the ground.

The solar plants are slated to be built in the districts of Kurnool, Ananthapuramu, Prakasam and Kadapa.Adani Group, Torrent Power and state-run NTPC are learnt to be among the bidders, with Adani offering to the build the largest capacity individually. (Representative image)

The Andhra Pradesh government has received good response to the bids invited by it earlier this month to build solar power capacity of another 6,400 MW in the state, with all bids received adding up to 14,900 MW.

Adani Group, Torrent Power and state-run NTPC are learnt to be among the bidders, with Adani offering to the build the largest capacity individually.

Robust investor interest in the state’s solar sector has put at rest speculation that the latest tender process might come a cropper in the wake of a number of major developers refraining from participating in it, citing the state’s “poor track record”. Solar power producers had unsuccessfully requested the state government to extend the bid submission timelines for the latest tender for three months “to fully comprehend the technical aspects of the proposed project”.

The solar plants are slated to be built in the districts of Kurnool, Ananthapuramu, Prakasam and Kadapa.

The state government had earlier started building a 1,000 MW solar park in Kadapa, through a joint venture with the Centre, but has not allotted lands or awarded contracts for work on the ground.

The state government had formed a committee to revise “abnormally priced” wind and solar power purchase agreements (PPAs) in July 2019, saying there might have been linked with “mala fide intentions”. The state had gone ahead with this plan despite the Centre’s advice that this could upset investor confidence in the sunrise sector and might have a pan-India adverse impact. The Andhra Pradesh High Court had struck down the state government order on renegotiating PPAs, and directed the discoms to pay more than 7,500 MW of wind and solar plants at a provisional rate of Rs 2.43 per unit — against the Rs 4.84 per unit tariff they were receiving earlier — till the legal disputes are resolved.

Renewable energy developers in Andhra Pradesh have recently sought the Centre’s intervention to clear the outstanding dues of around Rs 3,000 crore owed to them by the state-run discoms. The developers have not been receiving payments regularly even at the reduced rates from the discoms, pending resolution of the disputes. Overdues — receivables pending for more than 60 days — to solar and wind plants have increased 30% since April to Rs 2,921 crore at October end.

The under-recoveries from lower tariffs are pegged at around Rs 5,000 crore and the case is currently in the high court. The matter was last heard by the court on March 11, 2020.

Get live Stock Prices from BSE, NSE, US Market and latest NAV, portfolio of Mutual Funds, Check out latest IPO News, Best Performing IPOs, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Financial Express is now on Telegram. Click here to join our channel and stay updated with the latest Biz news and updates.

Next Stories
1Workplace tech: Creating delight in the new world of work
2Peak power demand scales new high
3Bajaj Finance Q3 net profit falls 29%