PPAs for 655 MW Solar Projects in Karnataka to be Signed by March 28, 2018

The process was stalled after Grasim Industries filed a writ petition with the Karnataka High Court


The deadline for signing the Power Purchase Agreements (PPAs) for 655 MW of grid-connected solar photovoltaic (PV) projects in the state of Karnataka has been extended to March 28, 2018.

The projects had been auctioned by Karnataka Renewable Energy Development Limited (KREDL).

In the KREDL order, the capacity mentioned for the extension of PPA is 655 MW. However, in the auction, a total of 760 MW of solar PV projects had been auctioned. When contacted for clarification, a KREDL official told Mercom, “100 MW bids were not received, and another 100 MW was under Domestic Content Requirement (DCR) category. So that had to be cancelled keeping in mind the compliance with World Trade Organization (WTO) norms.”

KREDL had tendered 860 MW of grid-connected solar PV to be developed across 43 taluks in Karnataka in December 2017 and the auction for 760 MW had concluded in the first week of February 2018.

After the auction, Grasim Industries Limited had filed a writ petition with the Karnataka High Court, stalling the process. Grasim Industries’ petition was based on the fact that the initial deposit of ₹1 million (~$15,414) paid by them had not been uploaded in the e-tendering portal due to a technical glitch, rendering them unable to participate.

The Karnataka High Court then put a stay on the auction, asking the respondents to appear before it on February 17, 2018.

On February 17, 2018, the court had adjourned the matter until further proceedings. On February 27, 2018, the writ petition filed by Grasim Industries Limited was dismissed by the Karnataka High Court.

After the removal of the stay order, the winners of the auction had sought extension of time from KREDL to sign PPAs. KREDL has now allowed the winning bidders to enter their PPAs with the distribution companies (DISCOMs) up to March 28, 2018.