Post

India to Initiate Dollar Bidding for Solar Contracts

India to Initiate Dollar Bidding for Solar Contracts

PV Magazine reports that India’s government is ready to introduce its first U.S. dollar bidding process for solar tenders in an effort to attract greater overseas investment and cut development costs in the country.

State-owned National Thermal Power Corporation, will award tenders for between 500MW-1GW this month, Ministry of New and Renewable Energy joint secretary Tarun Kapoor told Bloomberg in New Delhi. According to Kapoor, dollar-linked tariffs could potentially lower borrowing costs by a third, and it will incentivize more international companies to India’s solar market. The Indian government has targeted 100 GW of solar PV capacity by 2022.

National Thermal Power Corporation will also set up a private fund to manage the currency risk and shield retail customers from any fluctuations, with those awarded the contracts paid the rupee equivalent of the dollar tariff set to be determined by the bidding process. “We will be creating a self-hedging mechanism to ensure that it does not cause any distress to the purchasing distribution companies,” power minister Piyush Goyal told the Financial Times. Distribution companies that purchase this solar power would also contribute to a ‘hedging reserve’, which would be used to soften any costs incurred should the rupee depreciate.

Share

About Amritt

Who We Are

Small or big, your business will love our financial help and business consultations! We are happy when our clients are too… Actually, this is quite simple to achieve – because each time we help them in sorting out different accounting intricacies or save the day before filing the taxes, they are happy indeed! And so are we.   

We have over Twenty years of experience helping our clients succeed in India

Generic selectors
Exact matches only
Search in title
Search in content
Post Type Selectors
Blog
Page
Dictionary
Comparisons
Capabilities
India Business Guide
Services
Private
Speaking
Insights
White Papers
News
Newsletters
Clients
Case Studies
Companies In India
Webinars
Presentations
Industries