The Solar Energy Corporation of India Limited (SECI) has announced an amendment for its tender that calls for setting up 7 GW of solar projects coupled with 2 GW of the manufacturing component.
SECI had increased the manufacturing linked solar tender, which it had initially floated in January 2019. The capacity has been increased from 6 GW to 7 GW.
In light of this tender, the Indian Renewable Energy Development Agency Limited (IREDA) has announced that it would provide term loans to solar manufacturing projects.
SECI has amended various clauses of this tender to make it appealing for the interested developers. It has notified that under the bidding package A, one-fourth of the cumulative allocated capacity will need to be commissioned within 48-60 months from the date when the power purchase agreements (PPAs) have been signed. The earlier notification stated that commissioned allocated capacity should within 48-60 months from the date of the issue of Letter of Award (LoA).
According to SECI, the solar power developers (SPDs) will now be required to set up a cumulative annual solar manufacturing capacity of 2 GW, which would be set up over two years from the date of execution of the contract agreement. However, earlier, it was stated that the selected developers would set up the cumulative annual solar manufacturing capacity of 2 GW for two years from the date of the LoA.
Further, the notification states that the solar PV cells should be domestically manufactured, using undiffused silicon wafer (generally called black wafer) classifiable under Customs Tariff Head 3818. Also, if the developer imports diffused silicon wafer (commonly called blue wafer) and is used as raw material for the manufacture of solar PV cells in India, then such solar cells will not be qualified as a domestically manufactured product.
Moreover, the amended clause states that in case the manufacturing plant’s commercial operation date (MCOD) is delayed beyond 36 months from the effective date of the package-1 power purchase agreement (instead of the manufacturing contract agreement), then the balance amount available on the first performance bank guarantee (PBG) will stand forfeited.
Also, the tariff-related to setting up of solar PV power projects will be reduced to the minimum tariff of ISTS-connected solar tenders floated by SECI within the last one year.
SECI has emphasized that the solar power developer and the buying entity should follow the forecasting and scheduling process as per the regulations passed by state commissions. In the earlier amendment, it was between the solar power developer and SECI.
Lastly, in case of any of the bidding package (either bidding package A or B), the undersubscribed portion may be transferred to another bidding package which has been fully subscribed. Earlier, SECI had not mentioned this point about under subscription.
