Tariff dispute: Solar players vs Gujarat power

12 Feb 2021 CW Staff

The parent body for electricity development in the state, Gujarat Urja Vikas Nigam Ltd (GUVNL), had awarded the contracts to state-run SJVN Ltd, Tata Power Co, and ReNew Power to build solar capacity at tariffs as much as Rs 2.81 per kWh.

The industry has sought the Centre's intervention to resolve the matter.

The 700 MW project is part of a 1 GW solar park planned at Dholera, a low-lying wasteland surrounded by water bodies and frequently swamped by floods.

While 300 MW of projects have been awarded, the state struggled to attract bidders for the rest because of the site's geological challenges, which would require higher installation costs.

Make in Steel 2021

24 February

Click for event info

4th Indian Cement Review Conference 2021

17-18 March

Click for event info

To accommodate these challenges, GUVNL placed a higher price ceiling of Rs 2.92 per kWh on auctions conducted last year. A few months later, solar power auctions, including one conducted by Gujarat, saw a plunge in prices, guiding the state utility to consider seeking fresh bids in the electricity consumers' interest, according to an order by the state regulator, which approved the plan.

In November, the Solar Energy Corporation of India’s (SECI) auction attracted over 5,000 MW of bids, nearly five times over the 1,070 MW that went under the hammer. While the competition was a heartening trend, tariffs touched all-time lows of Rs 2.36 per kWh. The aggressive bidding that was witnessed presents a stark contrast to the early solar auction years spanning between 2015 and 2017, where a gross oversubscription of the tenders resulted in the exit of many developers from the market. This over subscription was, in large, attributed to the demand-supply mismatch.

In Gujarat, the ambitious 11,000 hectare area in Dholera identified for solar parks drew up a plan in 2019 to attract 5,000 MW of solar power installation.

Image: The tariff-driven withdrawal has prompted the industry to approach the Centre to intervene.

Also read: India’s solar tariffs at an all-time low

The Indian government has stepped in to resolve a dispute between the state of Gujarat and solar power developers over the state's plan to rescind bids for a 700 MW solar project because of high tariffs and invite fresh ones. The parent body for electricity development in the state, Gujarat Urja Vikas Nigam Ltd (GUVNL), had awarded the contracts to state-run SJVN Ltd, Tata Power Co, and ReNew Power to build solar capacity at tariffs as much as Rs 2.81 per kWh. The industry has sought the Centre's intervention to resolve the matter. The 700 MW project is part of a 1 GW solar park planned at Dholera, a low-lying wasteland surrounded by water bodies and frequently swamped by floods. While 300 MW of projects have been awarded, the state struggled to attract bidders for the rest because of the site's geological challenges, which would require higher installation costs.Make in Steel 202124 February Click for event info4th Indian Cement Review Conference 202117-18 March Click for event info To accommodate these challenges, GUVNL placed a higher price ceiling of Rs 2.92 per kWh on auctions conducted last year. A few months later, solar power auctions, including one conducted by Gujarat, saw a plunge in prices, guiding the state utility to consider seeking fresh bids in the electricity consumers' interest, according to an order by the state regulator, which approved the plan. In November, the Solar Energy Corporation of India’s (SECI) auction attracted over 5,000 MW of bids, nearly five times over the 1,070 MW that went under the hammer. While the competition was a heartening trend, tariffs touched all-time lows of Rs 2.36 per kWh. The aggressive bidding that was witnessed presents a stark contrast to the early solar auction years spanning between 2015 and 2017, where a gross oversubscription of the tenders resulted in the exit of many developers from the market. This over subscription was, in large, attributed to the demand-supply mismatch. In Gujarat, the ambitious 11,000 hectare area in Dholera identified for solar parks drew up a plan in 2019 to attract 5,000 MW of solar power installation. Image: The tariff-driven withdrawal has prompted the industry to approach the Centre to intervene.Also read: India’s solar tariffs at an all-time low

Real Estate

31 Oct 2025

Birla Estates Tops Global GRESB 2025 Rankings

Birla Estates (BEPL), a wholly owned subsidiary of Aditya Birla Real Estate (formerly Century Textiles and Industries Limited), has been recognised as a Sector Leader in the 2025 GRESB Real Estate Assessment, securing top honours across multiple global and regional categories.Birla Estates’ Achievements in GRESB 2025:Global Sector Leader – ResidentialGlobal Sector Leader – Non-Listed ResidentialRegional Sector Leader – Asia – ResidentialRegional Sector Leader – Non-Listed – Asia – ResidentialThese distinctions reaffirm Birla Estates’ exceptional performance in Environmental, ..

Infrastructure Transport

31 Oct 2025

Progota India Secures RDSO Clearance for Kavach 4.0

Concord Control Systems, one of India’s leading manufacturers of embedded electronic and critical system solutions, announced that its associate company, Progota India, has received Technical Prototype Clearance from the Research Designs and Standards Organisation (RDSO) for Kavach 4.0, the latest version of Indian Railways’ indigenous Automatic Train Protection (ATP) system.With this clearance, Progota has been formally approved to execute its ongoing trial order from South Central Railway, marking a key milestone in India’s railway modernization journey. The approval also establishes P..

Infrastructure Urban

31 Oct 2025

MPS Interactive Systems Completes Full Acquisition of Liberate Group

MPS Interactive Systems (MPSi), a material subsidiary of MPS, has completed the acquisition of the remaining shareholding in the Liberate Group of Companies—comprising Liberate Learning, App-eLearn, and Liberate eLearning.With this transaction, MPSi now holds 100 per cent ownership of all entities within the Liberate Group, making them its wholly owned subsidiaries. The acquisition was executed in line with the valuation methodology defined in the original transaction documents.Commenting on the development, Rahul Arora, Chairman and CEO of MPS, said, “The corporate learning sector continu..