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ACME to cancel India’s cheapest solar project citing Covid-19 impact
ACME Solar, which had bid India’s lowest solar tariff has decided to cancel the project. It had won the 600-Mw project in Rajasthan at a historic low rate of Rs 2.44 per unit in 2018.
The company in its petition to the Central Electricity Regulatory Commission (CERC) has cited Corona pandemic as one of the reasons for the cancelling the power purchase agreement (PPA) for the project with the government agencies.
The company has filed its petition with CERC to prevent Solar Energy Corporation of India (SECI) and Power Grid Corporation of India (PGCIL) from encashing the bank guarantee and letter of comfort submitted for the project. ACME had signed the PPA with SECI and power supply agreement (PSA) with PGCIL.
In its petition, ACME Solar has mentioned that it has terminated the PPAs dated December 2018 executed with SECI “on account of the force majeure events”. Among the several reasons cited by the company, one is the latest Corona pandemic.