IRCON International, a Central government enterprise, has won the rights to develop a 500-mw solar project under an auction conducted by nodal agency IREDA.
In a stock exchange filing, IRCON International said that the company has won a bid to set up a 500-mw solar project, through e-reverse auction.
The project was won under the “CPSU Scheme-II (Tranche III)” floated by Indian Renewable Energy Development Agency (IREDA). The selection process was based on e-reverse auction and the scheme allows for viability gap funding (VGF). In the case of IRCON’s project, the VGF works out to Rs.224.70 crore while the total project cost is estimated at around Rs.2,400 crore.
No more details were provided by IRCON in the stock exchange filing.
According to information available with T&D India, IREDA was entrusted with “CPSU Scheme-II (Tranche III)” that aimed at awarding solar projects aggregating 12,000 mw (or 12 GW), only to Central public sector undertakings (CPSU).
The selection process to be followed is VGF-based e-reverse auction under the bucket-filling mechanism.
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The third tranche closed for bidding on September 20, 2021, after multiple extensions in closing date. Out of the 12 GW offered, around 5 GW was ultimately awarded to developers, including IRCON International.
Under the scheme, land acquisition, connectivity and long-term open access (LTOA), if applicable, will be the responsibility of the developer.
As per the scheme guidelines, solar power developers need to complete their projects (if less than 1,000 mw) within 36 months of issuance of the letter of award. For projects above 1,000 mw, capacity up to 500 mw has to be completed in 36 months. The excess will be divided in blocks of 500 mw each, and each block will need to be completed within six months thereafter, sequentially. This means that the first “excess” block will get six months, the second 12 months, etc, from the date of commissioning of the base capacity of 500 mw.
