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Indian solar develoer propose to impose 50pct of solar tariff as penalty for not buying power

Power News - Published on Fri, 21 Sep 2018

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Money Control reported that Indian solar power developers have urged the power ministry to impose 50 percent tariff penalty on distribution companies that are not buying clean power despite their purchase agreements,. At a meeting of stakeholders called by the Ministry of New and Renewable Energy, solar power developers proposed that discoms should be penalised 50 percent of the agreed tariff for the part of renewable energy that they refuse to use. The ministry had called the meeting of renewable energy project developers, bankers and financial institutions and other officials to deliberate on difficulties being faced by the investors in view of India's ambitious target of having 175 GW of clean energy capacities by 2022.

Sources said that "There has been back down of operational solar plants by discoms. The ministry is thinking to impose penalties on discoms to pay 50 percent tariff for units not purchased.”

The renewable energy project developers are facing issues related to financing of their projects. Some of the banks as well as financial institutions are unwilling to fund the impact of safeguard duty on solar equipment.

During the meeting, the MNRE has assured that it would explore the possibility of financing impact of safeguard duty on projects by Indian Renewable Energy Development Agency Limited (IREDA) as an interim arrangement.

It said that "MNRE will explore the interim financing of safeguard impact. Besides all developers are asked to send a note to the MNRE if the lending banks are not financing. The MNRE has also assured to take up the issue with the CMD of the concerned bank and if required with the Ministry of Finance.”

The MNRE also asked all the banks not to impose the requirement of module suppliers from Bloomberg Tier 1 list and follow BIS approved list of suppliers for loan appraisals.

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Posted By : Rabi Wangkhem on Fri, 21 Sep 2018
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