ACME is the only developer that was allotted the 600 MW SECI solar project which had quoted lowest tariff of Rs. 2.44 per unit.
Solar Energy Corporation of India (SECI) has cancelled the allotment of 2400 MW of auctioned solar projects after the auction of 3000 MW of solar projects held on July 13.
While the corporation cancelled major portion of the auction, it upheld the allotment of rest of the 600 MW of projects which received the lowest bid from the bidder. The decision was announced at a meeting between developers and the government officials.
Surprisingly, ACME was the only developer that was allotted the 600 MW of solar project which had quoted lowest tariff of Rs. 2.44 per unit.
“The government found all the other allotted projects to be too expensive, developers said. They said the difference between the lowest bidders and the second lowest was 20 paisa, which was too wide”, said a developer who was present at the meeting.
The projects that have been cancelled include 1100 MW won by SB Energy, a joint venture between Japan’s SoftBank, Taiwan’s Foxconn and Bharti Airtel , and 500 MW won by ReNew Power, both of which had quoted Rs 2.71 per unit, besides 300 MW each won by Mahindra Solar and Mahoba Solar which quoted Rs. 2.64 per unit.
“Apparently the SECI board decided this. The highest winning bid was Rs 2.71, which was felt to be very high. The developers concerned refused to lower their prices any further. This was felt to be not competitive,” the power sector official told ET.
The cancellation was clearly on the grounds of the undesired tariffs offered by the bidders.