The Karnataka Renewable Energy Development Limited (KREDL) has amended the bidding guidelines for 650 MW of solar photovoltaic (PV) projects to be developed in the Pavagada Solar Park located in the state’s Tumkur district.
KREDL had retendered the capacity in April 2018. In January 2018, KREDL had tendered 1,200 MW of grid-connected solar PV projects to be developed at Pavagada. However, KREDL was able to auction merely 550 MW of the tendered capacity due to poor response from bidders amid various ongoing uncertainties in the solar sector.
KREDL has now extended the project commissioning timeframe from 10 months to 12 months and the maximum time-period allowed for achieving the project commissioning along with encashment of performance security and payment of liquidated damages from 14 months to 16 months.
Under the amendment, KREDL has asked the solar project developers (SPD) to submit an irrevocable unconditional performance bank guarantee (PBG) of ₹0.5 million (~$7,458.46)/MW with validity for a minimum period of 15 months.
The SPD will have to pay ₹5 million (~$74,584) for 50 MW, calculated at ₹1 million (~$14,916)/MW to solar power park developer (SPPD) towards compensation for horticultural trees, agricultural crops, yielding bore-wells, drip irrigation, sprinklers building etc.
The SPDs will have to reimburse Karnataka Solar Park Development Corporation Limited (KSPDCL), the annual lease rent for the years 2015-16, 2016-17 and 2017-18 along with interest at State Bank of India (SBI) prime lending rate (PLR) at the time of signing LSA OR in three equal installments.
The first installment will be paid in the month of April 2019, second installment in the month of April 2020 and the third installment will be paid in the month of April 2021.
Image credit: AMPL Cleantech
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.