Guj solar bids: Lowest tariff unaffected by new customs duty
POWER & RENEWABLE ENERGY

Guj solar bids: Lowest tariff unaffected by new customs duty

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

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

Next Story
Equipment

Handling concrete better

Efficiently handling the transportation and placement of concrete is essential to help maintain the quality of construction, meet project timelines by minimising downtimes, and reduce costs – by 5 to 15 per cent, according to Sandeep Jain, Director, Arkade Developers. CW explores what the efficient handling of concrete entails.Select wellFirst, a word on choosing the right equipment, such as a mixer with a capacity aligned to the volume required onsite, from Vaibhav Kulkarni, Concrete Expert. “An overly large mixer will increase the idle time (and cost), while one that ..

Next Story
Real Estate

Elevated floors!

Raised access flooring, also called false flooring, is a less common interiors feature than false ceilings, but it has as many uses – if not more.A raised floor is a modular panel installed above the structural floor. The space beneath the raised flooring is typically used to accommodate utilities such as electrical cables, plumbing and HVAC systems. And so, raised flooring is usually associated with buildings with heavy cabling and precise air distribution needs, such as data centres.That said, CW interacted with designers and architects and discovered that false flooring can come in handy ..

Next Story
Infrastructure Urban

The Variation Challenge

A variation or change in scope clause is defined in construction contracts to take care of situations arising from change in the defined scope of work. Such changes may arise due to factors such as additions or deletions in the scope of work, modifications in the type, grade or specifications of materials, alterations in specifications or drawings, and acts or omissions of other contractors. Further, ineffective planning, inadequate investigations or surveys and requests from the employer or those within the project’s area of influence can contribute to changes in the scope of work. Ext..

Advertisement

Advertisement

Subscribe to Our Newsletter

Get daily newsletters around different themes from Construction world.

STAY CONNECTED

Advertisement

Advertisement

Advertisement

Advertisement

Talk to us?