Uttar Pradesh became the latest state to cancel winning bids for 184 MW discovered at auction in February last year. The solar companies have said that the cancellation of offers and attempts at renegotiation by states are affecting India’s image with foreign investors.
Uttar Pradesh New and Renewable
The agency (UPNEDA) sent letters notifying the cancellation to NV Vogt Singapore Private Ltd, Al-Jomaih-Jakson Power Private Ltd, Vijay Printing Press Private Ltd and Talettutayi Solar Projects Eight, claiming that their offers had become “Prescribed and unsuccessful” since no action was taken by the companies after agreeing to the extension of the period of validity of the offer until March 31, 2021.
“It is very wrong for UPNEDA to conclude that no action has been taken by our members for the extension of the candidacy period. There is no basis for the UPNEDA statement that our offers became time-barred and unsuccessful because we took no action, while it was UPNEDA whose inaction led to this. Said the National Solar Energy Federation of India (NSEFI). said in his letter to Union Energy and Renewable Energy Minister RK Singh.
It makes sense that once the reverse auction process is complete, it is the bidding agency’s responsibility to issue the letters of intent to the winners within a specified time frame, as outlined in the bidding guidelines. According to the RFP, UPNEDA was obliged to publish the letter of intent no later than May 15, 2020. “However, UPNEDA was unable to deliver the letter of intent to our members within these deadlines. despite their regular follow-up and asked our members to extend deadlines for the extension of the validity of the offer period on various occasions which has been duly accepted by our members. This was done by our members in the interest of commissioning the project with the hope that they will receive the letters of intent soon, ”said NSEFI.
He said there was a growing trend among states to cancel or renegotiate offers, making it difficult for companies to execute projects in India.
“This uncertainty will not only hamper FDI in the sector, but also make foreign investors cautious about any investments in the power sector that will affect India’s course and targets for renewable energy,” did he declare.