Guj solar bids: Lowest tariff unaffected by new customs duty

15 Apr 2021 CW Staff

The Ministry of New and Renewable Energy (MoNRE) had notified the media that a basic customs duty (BCD) on solar imports up to 40% is set to be levied from 1 April 2022. With the new order, there is an expectation that project costs will shoot up.

However, in January 2021, the Gujarat Urja Vikas Nigam Limited (GUVNL) had floated a request for selection to purchase power from 500 MW of grid-connected solar photovoltaic (PV) projects to be set up in the state in phase-12.

The tender had received a good response and was oversubscribed. Despite being the first auction after the BCD announcement, there was no significant increase in the quoted tariffs.

NTPC Renewable Energy, Sprng Ujjvala Energy, Coal India Ltd, and TP Saurya, a Tata Power subsidiary, were declared winners in the auction to purchase power from 500 MW grid-connected solar projects.

Sprng Ujjvala Energy won a capacity of 120 MW quoting Rs 2.20 per kWh. NTPC Renewable Energy, Coal India, and TP Saurya won 150 MW, 100 MW, and 60 MW, respectively, quoting Rs 2.20 per kWh. SJVN had quoted Rs 2.21 per kWh for 100 MW but won 70 MW capacity under the bucket filling method.

Since this was the first auction after the announcement of BCD, bidders were forewarned to take the duty into account while quoting tariffs in all future bids where the last date of bid submission fell after the notification dated 9 March 2021.

The lowest quoted tariff was up just 11% compared to GUVNL’s previous auction for 500 MW of solar projects, which set a new record for the lowest tariff with Rs 1.99 per kWh in the auction.

Image Source

Also read: Customs duty on solar imports from April 2022

Also read: Tariff dispute: Solar players vs Gujarat power

Also read: GUVNL reissues scrapped solar tenders

Infrastructure Transport

07 Apr 2026

Large Format Store Planned At M G Road Metro Station

M G Road station in Bengaluru is set to host the city’s first large-format commercial and experience space, with planning led by Bangalore Metro Rail Corporation Limited. BMRCL has invited proposals to develop and operate a central business district destination at the Purple?Pink Line interchange. The plan positions the station as a commercial hub designed to serve a broad commuter base across the city. The proposal is part of a broader effort to activate transit nodes commercially. Tender documents set a minimum monthly rental of Rs 0.944 million (mn), inclusive of GST, for the large-format..

Government Cancels Auction Of Eleven Critical Mineral Blocks

The government has cancelled the auction of 11 critical and strategic mineral blocks after receiving a poor investor response and failing to attract a sufficient number of qualified bidders. The decision represents a setback to plans to ramp up domestic exploration and production of critical minerals amid global supply chain disruptions and rising demand for materials used in clean energy and advanced technologies. The mines ministry issued an annulment notice setting out the reasons for the cancellations. The annulment notice indicated that the auction process for five mineral blocks was canc..

Gujarat Pushes Biogas Growth With 193 Operational Units

Gujarat has operationalised 193 biogas plants across the state and is planning to add 60 more units as part of a broader push to scale up clean and sustainable energy solutions. The existing plants, established under various government-supported schemes, process organic waste including cattle dung and agricultural residue to produce biogas and a nutrient-rich slurry. The output is mainly used for cooking and other energy needs in rural and semi-urban communities, while also improving local waste management practices. The Gujarat Energy Development Agency (GEDA) is leading the initiative and is..