L&T Wins ₹6.06 Billion EPC Contract for SECI’s 100 MW Floating Solar Project

The EPC contract price will receive a deemed export benefit of ₹924.08 million


Larsen and Toubro (L&T) has won the engineering procurement and construction (EPC) contract for the Solar Energy Corporation of India’s (SECI) 100 MW floating solar power project to be set up at Getalsud Dam in Ranchi, Jharkhand.

The scope of work will include the design, engineering, supply, construction, erection, testing, and commissioning of the project. The company will also be responsible for the project’s operation and maintenance (O&M) for five years.

L&T quoted a total contract price of ₹6.06 billion (~$73.13 million) to win the contract. The price comprises ₹5.9 billion (~$71.19 million) for the EPC price, including all taxes and duties, and ₹157.6 million (~$1.90 million) for the O&M price, including the GST for five years.

The EPC contract awarded to L&T has a deemed export benefit component comprising of the Basic Customs Duty (BCD) component on modules and inverters amounting to ₹812.02 million (~$9.80 million) excluding GST on BCD value or ₹924.08 million (~$11.15 million) including GST on BCD value. The exemption was granted to L&T in line with the declaration they had submitted under the Deemed Export benefit and Against Project Authority Certificate provided by SECI.

The project is tendered through International Competitive Bidding and funded by the World Bank. Therefore, it was treated as a Deemed Export and exempted from BCD for the imported supply of the goods against “Project Authority Certificate (PAC).”

SECI had floated the EPC tender for the project back in February 2022.

In September 2023, the Jharkhand State Electricity Regulatory Commission allowed the Jharkhand Bijli Vitran Nigam (JBVNL) to procure 100 MW of power from this floating solar project to fulfill its renewable purchase obligation.

The Commission added that JBVNL should procure power from the project at a ceiling price of ₹3.50 (~$0.042)/kWh or lower.

SECI will have to file a petition for tariff determination after the project is commissioned.

JBVNL, in its petition, emphasized that the project would receive a ‘must Run’ designation, exempt from merit order dispatch by the JBVNL. Power from the project would be injected at a single point into the state transmission utility of Jharkhand Urja Sancharan Nigam at the interconnection point.

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