SECI Amends Change in Law Clause in RfS for 3 GW Solar with 1.5 GW Manufacturing Tender
SECI had tendered the capacity in January 2019
March 13, 2019
The Solar Energy Corporation of India (SECI) has amended the provision for “Change in Law” in the Request for Selection (RfS) for the 3 GW interstate transmission system (ISTS)-connected solar photovoltaic (PV) capacity linked tender with 1.5 GW of manufacturing. This is the second time the RfS for this tender has been amended.
According to the amendment, ““Change in Law” will include any change in the rates of any taxes including any duties and cess or introduction of any new tax made applicable for setting up the solar PV power project and supply of power from the solar PV power project by the solar project developer which have a direct effect on the solar PV project.”
SECI has stated that “Change in Law” will not include any change in taxes on corporate income or any change in any withholding tax on income or dividends distributed to the shareholders of the solar project developer, or any change on account of regulatory measures by the appropriate commission.
SECI had tendered the capacity in January 2019 and then issued the first set of amendments to the RfS in February 2019. The minimum capacity for bidding is 1,000 MW of solar capacity linked with 500 MW of solar manufacturing. A single bidder can bid for the entire capacity.
The manufacturing unit and the solar PV projects will be developed on build own operate (BOO) basis. SECI will enter into a power purchase agreement with the successful bidders for the purchase of solar power for 25 years. The maximum tariff payable to the project developer is fixed at ₹2.75 (~$0.039)/ kWh for 25 years.
Earlier in May 2018, SECI had tendered 5 GW of manufacturing capacity linked to ISTS-connected solar projects for an aggregate capacity of 10 GW which was later reduced to 3 GW.
Saumy is a senior staff reporter with MercomIndia.com covering business and energy news since 2016. Prior to Mercom, Saumy was a copy editor at Thomson Reuters. Saumy earned his Bachelors Degree in Journalism & Mass Communication from the Manipal Institute of Communication at Manipal University. More articles from Saumy Prateek.