VIJAYAWADA: The state government, which has invited tenders for 6,400 mega watts (MWs) of solar parks as a part of the 10,000 MW solar plants, has identified power at an average of Rs 2.49 per unit through reverse tendering. While the lowest bid is Rs 2.47 per unit for a 300 MW plant in Kambadur of Anantapur district, Rs 2.58 per unit is the highest.
According to a statement from the government on Thursday, Adani Renewable Energy Holding Twelve Ltd emerged as the lowest bidder for five 600 MW plants in M Kambaladinne (Kadapa), Pendlimarri (Kadapa), Rudrasamudram (Prakasam), CS Puram (Prakasam) and Mudigubba (Anantapur).
Kadapa-based Shirdi Sai Electricals was the lowest bidder for three 600 MW plants in Urichintla (Anantapur), Kambadur (Anantapur) and Kolimigundla (Kurnool), and one 400 MW plant proposed in Thondur (Kadapa).
Similarly, NTPC filed the lowest bid for the 600 MW plant proposed in Chakrayapet; HES Infra for a 600 MW plant; and Torrent Power for a 300 MW unit in Kambadur (Anantapur). As the matter is sub-judice, it is said that the awarding of the projects will be done after getting clearance from the High Court.
“The process has resulted in the government securing close to 14,000 million units of power per annum at a tariff of Rs 2.48 per kWh, which is significantly lower than the tariff at which AP distribution utilities are procuring power... This low tariff of Rs 2.48 per unit would result in savings of nearly Rs 3,800 crore in the very first year. These savings are likely to increase over the years, considering the fact the present tariff of Rs 2.48 per unit would remain constant over the next 30 years, whereas the cost associated with power from some of the other sources is likely to go up,” the statement from the Chief Minister’s Office on Thursday read.
The present value of benefit accruing to the Andhra Pradesh government exchequer over the life of this project can conservatively be estimated at Rs 50,000 crore, it added. While the average per unit price discovered is Rs 2.49, a committee is examining if or not to accept the bid filed by Adani Group’s firm for CS Puram plant in Prakasam district at a higher price of Rs 2.58 per unit.
Claiming that the authorities adhered to all the guidelines prescribed by the Union Ministry of New and Renewable Energy (MNRE) to make the process transparent and objective, the government said that there was an “overwhelming response” to the tenders invited for 10 locations. “The process of filing bids along with the reverse tendering mechanism ensured the discovery of the low tariffs,” it observed.It further said that the TDP government had done ‘damage’ to the power sector by signing power purchase agreements at higher prices.
“The TDP government executed PPAs to procure large capacity of wind power at an exorbitant tariff of Rs 4.84 per kWh along with income tax and electricity duty reimbursements. The TDP government also executed PPAs to procure large quantities of solar power at Rs 5.25 per kWh to Rs 5.90 per kWh during the period 2014-2017. The developers got unreasonably high returns on their investments and the government and the discoms have been subjected to a very huge financial burden...” the statement said.
Lowest bidders
Adani: Five 600 MW plants in Kadapa, Prakasam, CS Puram and Anantapur
Kadapa-based Shirdi Sai Electricals: Three 600 MW plants in Anantapur and Kurnool, and one 400 MW plant in Kadapa
NTPC: one 600 MW plant in Chakrayapet