The Andhra Pradesh High Court has directed the State government not to enter into any agreements on the tender called by it for 6,400 MW of solar power. The order follows a petition by Tata Power Renewable Energy Ltd challenging the tender process The matter is posted for February 15.
Need tariff based bidding
Tata Power Renewable challenged the tender process as being violative of established practices and sought a direction to initiate fresh process based on established guidelines for tariff-based competitive bidding process for procurement of solar power.
Over 24 bids were filed for the 6400 MW ahead of the December 28 deadline.
As per the bids filed, the Adani Group has filed for all of the 6,500 MW, followed by Shirdi Sai Group for 5,800 mw, NTPC 1800 mw, Torrent Power for 300 mw and HES & SSICPL consortium for 600 mw. Together they have overbid for 15,000 mw capacity.
With the green shoe option and bids for nearly 15,000 MW, over 10,000 MW of solar capacity could be tied up. The State Government plans to use this to to meet the free power for supplying to farmers. These solar parks are to be taken up on build, operate and transfer (BOT) mode and will be transferred after the 30 years power purchase agreement (PPA) period.
The State Government before inviting tenders had stated that in its efforts to bring in transparency, it has brought a two stage tender process which paves way or reverse tendering before finalising of the successful bidders.