Centre fails to garner sufficient interest in project nine months after tender, as players shy away citing lack of funding support; govt may start process all over again
Central government has decided to cancel the lone bid that came for setting up a solar panel manufacturing unit along with a solar power plant. The tender for setting up the solar panel plant for an aggregate capacity of 5 Gw linked with solar power projects (for an aggregate capacity of 10 Gw) in India on build- own-operate basis was issued in May 2018.
After close to six extensions owing to lack of bidders, the bid was finalised in November last year. NYSE-listed Azure Power, along with Mumbai based Waaree Energies, was the sole company to submit its for setting up 600 Mw manufacturing and 2,000-Mw power project.
“As it was a single bid which means no competition, we have cancelled the bid. We will re-issue the tender,” R K Singh, minister of state for power and new & renewable energy told mediapersons.
The solar industry had earlier expressed reservations over the tender. While the Ministry of New & Renewable Energy had drafted a scheme to provide capital subsidy of up to 25 per cent to solar panel makers, the ministry of finance did not approve it. Major players shied away from this tender citing that there is no funding push from the Centre, which reduces the viability of solar manufacturing in India.