Indore Smart City Development Limited (ISCDL) has awarded a tender of Rs 4.20 billion (including 18% GST on the tender of Rs 3.56 billion) to a Delhi-based company to install a 60-megawatt capacity solar plant in Jalood to meet the electricity demands and help in reducing the bills.
“The Green Bond has generated around Rs 2.44 billion of fund while the tender to Rays Power Infra-Best Solar Energy Company for its installation and operation for next 10 years at Rs 3.56 billion and on it, 18% GST will also be paid” ISCDL's CEO Divyank Singh said.
He added that the Centre has sanctioned a subsidy of Rs 620 million on installing a solar plant of 100-megawatt capacity. “On installation of 60-megawatt capacity solar plant in the first phase, we will receive around Rs 370 million of subsidy” he said, adding that in the second phase, an additional 40 megawatt capacity solar plant will also be installed to reduce the expenses on electricity bill to supply Narmada River’s water to Indore.
“To pay the remaining amount of the tender’s cost, we are contemplating to either seek additional loan or pay the company in 10-years of installments as this clause is there in the agreement” he said, adding that three separate private firms had applied to get the work, but two of them got disqualified in the technical bids while the only company was awarded the project on its qualifying in the financial bid.
“With listing of the Green Bond, our clock of solar plant installation and starting operation in next 18 months had started. Though six months have been completed in assigning the tender, we are confident to complete it in the given deadline” he said, adding that ISCDL has meanwhile started paying monthly around Rs 40 million of coupon rate to the investors. According to Indore mayor Pushyamitra Bhargava and senior IMC officials, Indore is presently ‘drinking costlier water’ - Rs 27 per kiloliter. The money spent on pumping Narmada Water from Khargone’s Jalood Pumping Station costs a monthly electricity bill of Rs. 220 million.
