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Home News Power Sector News Andhra Pradesh to call bids for solar power

Andhra Pradesh to call bids for solar power

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APThe Andhra Pradesh Government is likely to call bids for generation of 1,000 mw of solar power shortly in a bid to overcome the power crisis and also to encourage non-conventional energy sector. Bank guarantees will be obtained from successful bidders to discourage non-serious players and deadline for the production will be March 2013. The government will claim the bank guarantee if anyone fails to commence production as per the schedule.

This decision was taken because many organisations failed to commission production although they obtained sanction for generation of nearly 100 mw of solar power in the past. The government is likely to offer Rs.7 to Rs.7.50 per unit of solar power supplied to the grid by the private producers. The rate has been chosen based on the lowest rate quoted by the companies when Delhi government called for tenders recently.

Speaking to this newspaper finance minister and convener of the committee on Solar policy Anam Ramanarayana Reddy said that the state has to spend Rs.700 crore to buy the Solar power. He said that Chief Minister N. Kiran Kumar Reddy gave green signal for budget allocation to the proposal.

Mr Ramanarayana Reddy said that they will be able to recover 90 per cent of the additional burden of Rs.700 crore by providing power to industries that are depending on diesel generators and spending anywhere between Rs.13 and Rs.15 for each unit. He reminded that the electricity department is able to provide only 60 per cent of the power requirement of major industries.

Referring to AP Solar Power Policy 2012 announced recently, he said that the state will promote power developers to set up solar power plants for captive use or sale of power to third party/state other than AP.

According to the Minister, AP would waive transmission fees for using state-owned infrastructure. It also won't charge cross-subsidy fee, which is levied to compensate state-owned distributors for losses they incur on supplying power below cost to households and farmers.

Solar projects will get refunds on value-added tax paid for equipment and on land duty and registration charges for sites. In addition, the state plans to speed up the approval process, issuing permits to build grid connections within 21 days. Mr Reddy stressed that it is a golden period for setting up solar/wind power projects in the state.

Source- Deccan Chronicle


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