Tata Power Solar Systems Ltd—a wholly owned subsidiary of integrated power producer Tata Power—has received a Letter of Award from state-owned NTPC for developing a 250MW solar project under the central public sector undertakings (CPSU) scheme.
The CPSU scheme provides viability gap funding (VGF) support for state-run power generators to set up 12 GW of grid-connected solar PV power projects using domestically-made equipment. The capacity is to be added in 4 years period from financial year 2019-20 to 2022-23.
Under the terms of the program, solar project developers qualify for a maximum Rs7 million of viability gap funding per megawatt of capacity planned, to make projects commercially viable.
The total value of the NTPC order bagged by Tata Power is Rs 15,050 million and the completion period is 20 months. With this order, the order book of Tata Power Solar has swelled to approximately Rs 76 billion including external and internal orders.
Under the CPSU scheme, only domestically manufactured cells and modules would be used for the project.
“It is Tata Power Solar’s biggest single order from a third party. Aligning with the Government’s ‘Make in India’ mission, it brings together our core strengths in domestic manufacturing and EPC services over the last two decades,” said Tata Power CEO and MD Praveer Sinha.
“This is a prestigious project for us and we are thankful to NTPC for reinforcing their confidence in our capabilities. It consolidates our commitment towards “Make in India” and underscores our competitive and quality offering as a leading EPC player in the country,” added President-Renewables Ashish Khanna.
In November 2019, Tata Power Solar had also received a Letter Of Award from NTPC to develop a 105MW floating solar project in Kayamkulam, Kerala. This Rs 3430 million project, required to be commissioned within 21 months, includes three-years operations and maintenance support. Kayamkulam project is one of the most prominent floating solar projects in the country.