UPPCL issues notice to 6 solar companies

UP Power Corporation Limited (UPPCL) issued the ‘Procure Preliminary Default’ notice to six companies, namely Adani Green Energy Ltd, Pinnacle Air Pvt Ltd, Awadh Rubber Prop, Madras Ilastomar Ltd, Sudhakar Infratech Private Ltd and Shastradhara Energy Private Ltd, seeking cancellation of their agreement with the New Energy Development Authority (Neda).

In its statement, UPPCL said the state government got into an agreement with 15 companies in 2015 under the solar power policy of 2013. Of these, nine installed solar power plants with a total capacity of 135MW but six companies did not honour the agreement to install power plants with an aggregate capacity of 80MW each. As per the agreement, the units were to supply solar power at the cost of Rs 7.02 to Rs 8.60 per unit. But due to falling solar tariffs the state government had asked all of them rework on proposal and voluntarily agree to sign at a lower solar tariffs of Rs 7.02 per kwH, which was proposed by the lowest bidder during the auction in 2015. Since these six companies did not comply so the governement has gone ahead and issued the notice.