Odisha has announced a 25 MW solar power project. Solar power plant developers can bid for the project and the one that sells the power at the lowest tariff to the State will be awarded the project.
The Odisha project tender requires applicants to submit a refundable Rs 3-crore earnest money deposit. Only companies with networth not less than Rs 3 crore can apply. The successful bidder will need to provide a Rs 30-crore bank guarantee at least seven days before signing the power purchase agreement. The guarantee should be valid for 22 months from the date of submission.
Further, the tender requires the successful bidder to complete the project in 13 months from the date of signing the PPA or 15 months from the date of issue of the letter of intent, whichever occurs earlier.
The State Government will not offer any facilitation for either land or connectivity to the grid.
Typically, a 1 MW solar photovoltaic plant costs around Rs 9 crore to put up and requires 5 acres of land.
This is the second solar photovoltaic project from Odisha. The first was another 25 MW, which was won by a company called Alex Green, a subsidiary of Shree Ganesh Jewellery House Ltd. The company won by quoting a tariff of Rs 7 a unit, which is till date an unbeaten record-low in the Indian solar power industry.
Third this week
The opening of bids for the 25 MW project is the third announcement in India in the last five days.
On September 27, the Andhra Pradesh Government came out with its solar policy, which basically gave several exemptions from standard charges and refund of taxes paid on project inputs. The next day, the Gujarat Government announced a 25 MW rooftop solar initiative.
For long, solar power developers have complained of lack of “project visibility”. The three announcements have raised hopes of more solar projects coming up in India.