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NTPC asks bidders for additional tariffs for tender floated earlier
State-run NTPC has asked solar power developers pre-qualified for a 2,000 MW tender it floated earlier this year to submit additional tariffs reflecting the impact of safeguard duty.
Developers asked NTPC on Monday to clarify whether they would be allowed to pass on the incremental tariff because of the safeguard duty to discoms, failing which, they demanded the tender to be scrapped, people aware of developments said.
The tender was oversubscribed by over 4,000 MW, with Softbank-led SBG Cleantech bidding for the entire 2,000 MW capacity tendered. Leading renewable energy players including ReNew Power, ACME Solar, Hero Future Energies, Avaada Power and Adani Green Energy were among the 14 players who submitted technical, along with price bids, for the tender last month.
Representatives from the companies which participated in the tender met NTPC officials individually on Monday. Following this, NTPC on Wednesday asked developers to send additional tariffs by August 13, a person directly aware of developments told ET.
The total of original tariff along with additional tariffs that the developers now submit will be considered to shortlist the bidders who qualify for reverse auction, NTPC told developers.
After the safeguard duty was imposed last week, developers will find it difficult to keep the tariffs at sub- Rs 3 levels, which is the new normal for renewable energy PPAs, said an executive of a leading independent power producer.
“The tariffs will go up by around 50 paise for these projects, since modules account for 60% of the total project cost,” the person added, requesting anonymity. NTPC’s move to allow developers to send in additional tariffs provides much clarity on the said tender, industry experts said.
“MNRE and NTPC have to acknowledge and listen to the concerns of the developers. To that extent that they have allowed developers to quote an extra amount, is definitely positive for the progress of the tender,” said Vinay Rustagi, managing director at renewable energy consultancy Bridge to India.
Solar power tariffs, which fell between Rs 2.50 and Rs 2.80 before the safeguard duty was levied, would now see a per unit increment by around 40 paise, Rustagi added.
Few developers in their meeting with NTPC officials earlier this week requested that a snap bid should be allowed, wherein all the terms and conditions of the tender remain the same and developers are allowed to submit a revised financial bid before going for the reverse auction.
The reverse bid for the auction due shortly would not have allowed an upward revision of tariffs and the developers did not factor in the safeguard duty while submitting the financial bid, said one of the persons quoted above.
“For the NTPC tender, there is no ceiling tariff, so even if the tariffs go a little over Rs 3 per unit, the question remains whether discoms will be ready to purchase power at these prices or not,” Rusatgi said.