Home Economy Andhra Pradesh’s 6.4 GW solar project oversubscribed

Andhra Pradesh’s 6.4 GW solar project oversubscribed

by Staff
445 views Vijayawada

Andhra Pradesh Green Energy Corporation Limited (APGECL) floated a tender in November 2020 for the development of a solar power project with a capacity of 6.4 gigawatts (GW). The objective of the project is to be able to provide free electricity for agriculture for the next 30 years.

Ten locations were identified for this purpose in Kadapa, Kurnool, Anantapur, and Prakasam districts. The 6.4 GW would be spread across Chakrayapet (600 MW), Thondur (400 MW), Kambaladinne (600 MW), Pendlimarri (600 MW), Rudrasamudram (600 MW), CS Puram (600 MW), Uruchinatala (600 MW), Kambadur (1,200 MW), Mudigubba (600 MW), and Kolimigundla (600 MW).

The deadline for filing bids was December 28th, 2020, however stakeholders had asked for at least a 3-month extension. There is international interest in investing in the project, but due to the YSRCP government’s past actions, investor confidence in the state is low. In 2018, two UK based firms had won tenders for developing solar projects in the state and had paid more than Rs. 350 crore to the state. But after coming to power, Jagan Mohan Reddy decided to revise the agreed tariffs, against the advice of the Union Ministry of Power. The government’s decision to revoke the power purchase agreements (PPAs) signed for operational wind and solar projects in the state adversely affected investor sentiment. 

There has been no extension of the deadline so far and the bids are set to be opened on January 7th, 2021. The APGECL has received bids from five bidders. The Adani Group, which has bid for the entire 6.4 GW is the largest player in solar power in the country. Torrent Power is one of Gujarat’s most experienced companies with a total generation capacity of 3,253 MW. This company has bid for 300 MW in the project. State-run NTPC is also one of the bidders and has bid for 1.6 GW. The other two bidders are Andhra-based Sri Sai which has placed a bid for 5.8 GW and HES-SSISPL which has bid for 600 MW. However, not much is known about both these firms. Bidders are required to submit Rs. 150,000 per MW as the earnest money deposit. 


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