The Indian government has decided to reject the sole bid it received, from Azure Power, for its first ever manufacturing-linked solar tender, following dissatisfaction with the quoted price, power and renewable energy minister R.K. Singh has been quoted as saying by the Economic Times.
The much-hyped 10 GW manufacturing-linked tender issued by the Solar Energy Corporation of India (SECI) was postponed six times and finally attracted one bidder, Azure Power. The Delhi-based developer had bid for a 2 GW project on a single site, as well as 600 MW of manufacturing capacity. That meant the mammoth tender was under-subscribed by almost 75%.
The tender, touted to be the world’s largest of its kind, was floated in May last year and initially mandated 5 GW of manufacturing capacity linked to ISTS-connected solar projects for an aggregate capacity of 10 GW. Following a poor response to the tender, the nodal agency reduced the manufacturing component to 3 GW, and the minimum project bid capacity from 1 GW to 600 MW.
“We found the price quoted by the bidder [Azure] to be unreasonable and hence we have decided to cancel the bid,” Singh told the Economic Times.