Economy

TN solar power investors likely to commit to 190 MW

R. Balaji Chennai | Updated on February 20, 2013 Published on February 20, 2013

Investors are likely to commit to over 190 MW of solar power generation in Tamil Nadu in response to the bids called by the Tamil Nadu Generation and Distribution Corporation, according to sources.

In January the utility had called for bids from private players to set up over 1,000 MW solar power generation facilities to supply to the grid for 20 years.

Over 90 bidders accounting for about 500 MW of generation capacity responded with bids ranging from Rs 5.97 a unit to about Rs 18.

Tangedco, the utility, offered to pay Rs 6.48 a unit, which, according to industry sources, was not viable for large players planning to set up utility scale projects.

Individual investors targeting the incentive of accelerated depreciation to offset income tax will find it attractive enough, according to some of the bidders.

Predominantly individual players and a couple of large investors, including a company with a presence in EPC contracts and utility scale solar power projects, have committed to set up generation facilities.

Apart from concern about the tariff, which impacts bankability of the project, adequate payment security issues are also a concern for investors who are worried about timely payment of tariffs from the cash- strapped utility, the source said.

> balaji.ar@thehindu.co.in

Published on February 20, 2013

A letter from the Editor


Dear Readers,

The coronavirus crisis has changed the world completely in the last few months. All of us have been locked into our homes, economic activity has come to a near standstill. Everyone has been impacted.

Including your favourite business and financial newspaper. Our printing and distribution chains have been severely disrupted across the country, leaving readers without access to newspapers. Newspaper delivery agents have also been unable to service their customers because of multiple restrictions.

In these difficult times, we, at BusinessLine have been working continuously every day so that you are informed about all the developments – whether on the pandemic, on policy responses, or the impact on the world of business and finance. Our team has been working round the clock to keep track of developments so that you – the reader – gets accurate information and actionable insights so that you can protect your jobs, businesses, finances and investments.

We are trying our best to ensure the newspaper reaches your hands every day. We have also ensured that even if your paper is not delivered, you can access BusinessLine in the e-paper format – just as it appears in print. Our website and apps too, are updated every minute, so that you can access the information you want anywhere, anytime.

But all this comes at a heavy cost. As you are aware, the lockdowns have wiped out almost all our entire revenue stream. Sustaining our quality journalism has become extremely challenging. That we have managed so far is thanks to your support. I thank all our subscribers – print and digital – for your support.

I appeal to all or readers to help us navigate these challenging times and help sustain one of the truly independent and credible voices in the world of Indian journalism. Doing so is easy. You can help us enormously simply by subscribing to our digital or e-paper editions. We offer several affordable subscription plans for our website, which includes Portfolio, our investment advisory section that offers rich investment advice from our highly qualified, in-house Research Bureau, the only such team in the Indian newspaper industry.

A little help from you can make a huge difference to the cause of quality journalism!

Support Quality Journalism
This article is closed for comments.
Please Email the Editor
You have read 1 out of 3 free articles for this week. For full access, please subscribe and get unlimited access to all sections.