Mahindra Susten’s storage-cum-solar power project in the Andaman and Nicobar islands has been shelved.
The company had won the contract for setting up the 28 MWh project for NLC India.
Due to a change in the requirement, NLC India will now invite tenders for a smaller eight MWh project. The Military Engineering Services has already called for bids for other two projects of one MWh each.
Mahindra Susten had emerged as the lowest (L1) bidder at Rs 289 crore which is 38 percent lower than the government of India estimates leading to a saving of approximately Rs 70 crore in Viability Gap Fund grant.
The project will have 20 MW of solar and 28 MWr of battery. The plant was expected to be commissioned by April 2019.
Currently, the islands meet all their existing power demand through diesel-run power generators.