India’s 3GW solar manufacturing tender delayed again

Solar Energy Corporation of India’s (SECI) tender for 3GW of solar manufacturing linked with 10GW of projects has been delayed for the second time in a month with the deadline for bid submissions now extended from 12 October to 12 November this year.

The tender was first issued in May drawing some early stage interest from heavyweight manufacturers both domestic and foreign, however, the tender specifications had put off players and led to several delays already.

The original 5GW manufacturing component had also been reduced to 3GW recently.

Ramesh Nair, CEO of Indian PV manufacturer and developer Adani Solar, recently told PV Tech in an interview at REI Expo in Delhi: “The government has designed a laudable tender which will ensure growth of the domestic manufacturing capabilities. The magnitude of bid size being tried for the first time makes it imperative for the government to ensure tariffs that facilitate off-take by state distribution companies (Discoms). Reducing the manufacturing component to 3GW is not an issue. However, interest in the tender is visibly low due to some shortcomings – existing manufacturers being kept out and serious concerns on the tariff cap fixed at INR2.75/kWh (US$0.038). Impetus to existing manufacturers will play a fundamental role in providing confidence to investors on the earnest efforts made for protecting the sector.”

Consultancy firm Bridge to India, had previously said when the tender was at 5GW that the capital outlay required narrowed the list of viable candidates to just four: ReNew, Adani, Softbank and Tata Power.

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