Solar EPC Contracts Cannot be Composite as per GST, Rules Maharashtra Authority

The Solar Energy Corporation of India (SECI) has announced a tender for the development of 100 MW of solar power projects in Telangana.

The scope of work for the tender includes the design, engineering, supply, construction, erection, testing and commissioning of a 100 MW (AC) solar photovoltaic (PV) project under different packages at the Singareni Collieries Company Limited. The scope of work also includes operation and maintenance services for ten years.

Tender documents for this project are expected to be issued by SECI on April 22, 2019.

The Singareni Collieries Company Limited or SCCL is a government-owned coal mining company in India, which is jointly owned by the Telangana government and the central government.

In August 2018, Mercom reported that Singareni Collieries was planning to develop 300 MW of solar projects in captive mode on vacant lands at various locations of the company. The company had estimated the entire capacity development to cost approximately ₹13,615 million (~$199.9 million) through a debt-equity ratio of 70:30.

In October 2018, SECI issued a tender to award EPC contracts for development of 129 MW solar PV capacity spread across various locations of SCCL.  Subsequently, Bharat Heavy Electricals Limited (BHEL), a public sector undertaking involved in the manufacturing of electrical equipment, won the order for setting up 129 MW of solar power projects for Singareni Collieries. The 129 MW projects were to be set up at four locations – Ramagundam (50 MW), Yellandu (39 MW), Manuguru (30 MW), and Pegadapally (10 MW), on EPC basis.

Last week, Gujarat Industries Power Company Limited also issued an EPC tender for 150 MW of grid-connected solar projects in the state.

This month, in Mercom’s newly released India Solar Market Leaderboard 2019 report, Sterling and Wilson emerged as the top EPC company cumulatively in 2018.

Shaurya Bajaj is a staff reporter for Mercomindia.com.