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

Infrastructure Urban

05 Nov 2025

TBO Tek Q2 Profit Climbs 12%, Revenue Surges 26% YoY

TBO Tek Limited one of the world’s largest travel distribution platforms, reported a solid performance for Q2 FY26 with a 26 per cent year-on-year increase in revenue to Rs 5.68 billion, reflecting broad-based growth and improving profitability.The company recorded a Gross Transaction Value (GTV) of Rs 8,901 crore, up 12 per cent YoY, driven by strong performance across Europe, MEA, and APAC regions. Adjusted EBITDA before acquisition-related costs stood at Rs 1.04 billion, up 16 per cent YoY, translating into an 18.32 per cent margin compared to 16.56 per cent in Q1 FY26. Profit after tax r..

Infrastructure Energy

05 Nov 2025

Northern Graphite, Rain Carbon Secure R&D Grant for Greener Battery Materials

Northern Graphite Corporation and Rain Carbon Canada Inc, a subsidiary of Rain Carbon Inc, have jointly received up to C$860,000 (€530,000) in funding under the Canada–Germany Collaborative Industrial Research and Development Programme to develop sustainable battery anode materials.The two-year, C$2.2 million project aims to transform natural graphite processing by-products into high-performance, battery-grade anode material (BAM). Supported by the National Research Council of Canada Industrial Research Assistance Programme (NRC IRAP) and Germany’s Federal Ministry for Economic Affairs a..

Infrastructure Urban

05 Nov 2025

Antony Waste Q2 Revenue Jumps 16%; Subsidiary Wins Rs 3,200 Cr WtE Projects

Antony Waste Handling Cell Limited (AWHCL), a leading player in India’s municipal solid waste management sector, announced a 16 per cent year-on-year increase in total operating revenue to Rs 2.33 billion for Q2 FY26. The growth was driven by higher waste volumes, escalated contracts, and strong operational execution.EBITDA rose 18 per cent to Rs 570 million, with margins steady at 21.6 per cent, while profit after tax stood at Rs 173 million, up 13 per cent YoY. Revenue from Municipal Solid Waste Collection and Transportation (MSW C&T) reached Rs 1.605 billion, and MSW Processing re..