Bloomberg has an interesting story on why Tata Power, India’s leading power generation company refrained from bidding for solar projects under JNNSM. While I personally feel that this might hamper the ‘postive climate’ surrounding solar pv and thermal projects, it raises several valid questions.

In summary Mr.Banmali Agrawala, senior officer from Tata Group has to say this.

• The terms set by government will make it difficult for projects to be built profitably
• Not Just Tatas, many of the corporate biggies too didnt show interest.
• The recently submitted proposals offering discounts of as much as 4 rupees to those rates set by the government might either be delayed and some even be shunned completely at later dates for they may find it unable to execute at quoted rates.
• Getting loans would be a problem, as the financial backing of NVNN, the official buyer is uncertain.

Full story….

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