SECI raises tariffs for 10GW solar scheme

Investor interest in the scheme continued to be weak.

The Solar Energy Corporation of India (SECI) raised the tariff for auctions for its 10GW manufacturing-linked solar scheme from 3.8 cents (INR2.75) per kWh to 3.9 cents (INR2.85) per kWh. However, this is still lower than the original proposed tariff of 4 cents (INR2.93) per kWh.

According to online documents, SECI also extended until 19 November 2018. Indian Express said this is the fifth postponement since the initial deadline of 20 August.

This move in line with the falling prices of solar modules and weak interest amongst investors. Additionally, bidders can get incentives like accelerated depreciation, concessional customs, excise duties, and tax holidays as available for such solar PV power projects.

Also read: India levies 25% import tariff on Chinese, Malaysian solar panels

Additional measures that aim to raise interest in the scheme include the expansion of the window to get waivers on the inter-state transmission system (ISTS) charge, changes in shareholding criteria for projects under the tender, and an almost 25% cut in the requisite bank guarantee amount.

The 10GW scheme aimed to boost the domestic solar manufacturing industry. According to Indian Express, solar developers sourced 88% of the products though cheaper imported component in FY2018.