Jul 17, 2014 - Indian firm Sunil Hitech Engineers Ltd (BOM:532711) will install a 5-MW solar plant in Maharashtra and expects to be awarded contracts for a further 15 MW of solar capacity, all under the National Solar Mission.
The company said in a statement on Tuesday it is in the final stages of obtaining the required financing for the 5-MW solar scheme. The contract for it has been awarded by the Solar Energy Corp of India (SECI).
The planned solar park in Maharashtra, land for which has been acquired already, is seen to be completed by April 2015. It has received of viability gap funding (VGF) of INR 13.5 million (USD 224,470/EUR 165,900) per MW. The solar park will be selling its generated electricity under a 25-year fixed tariff of INR 5.45 per kWh.
The project contract was awarded under the Jawaharlal Nehru National Solar Mission (JNNSM) Phase II Batch I for 750 MW of solar photovoltaic (PV) capacity. Sunil Hitech competed in the open category where developers were allowed to use imported solar equipment. The company expects to win two other projects under the programme, one of 5 MW and one of 10 MW. The larger one is expected to get a VGF of INR 14.4 million per MW and the same fixed tariff.
Under the VGF model, the government provides financial support to make projects commercially viable. The bidders in the 750-MW tender vied for VGF requirement per megawatt of capital cost which comes to compensate them for selling the output at a regular price and not at preferential tariffs. The lowest bids are the winning ones.
(INR 10 = USD 0.166/EUR 0.123)
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