Cash crunch hits solar power bids
Demonetisation has hit solar power tenders in Tamil Nadu with many developers unable to put down large volumes of cash needed to purchase the land required.
For presenting a bid for setting up a solar power project in Tamil Nadu, a company has to own land in its name. The tender was floated by Tangedco on October 21. Based on the Tamil Nadu Electricity Regulatory Commission (TNERC) order, the tariff was fixed at Rs 5.10 per unit.
“We had tied with a land owner in Tirunelveli for several acres. But he wanted more than 60% of the cost in the form of cash and the rest he said he would receive in cheque or bank transfers. The talks were going on and we were ready to register by the middle of November, but after demonetisation, we went back and refused to give him in cash,” a Hyderabad-based solar power company chief told.
Tamil Nadu, which presently leads in solar power capacity with 1,491MW, will likely fall short of its renewable power target this year.