SECI’s 2 GW CPSU Tender Undersubscribed

• SECI has received 5 bids for its 2 GW solar PV tender under CPSU Scheme Phase-II with a total of 1,068 MW
• Tender has been undersubscribed by 932 MW and all the bids have come from government entities
• NTPC has bid for 1 GW
• Other bidders had been looking for much smaller capacities - NHDC with 30 MW, Assam Distribution with 30 MW, Nalanda University with 5 MW and DMRC with 3 MW

The 2 GW grid-connected solar tender under the Indian government's CPSU Scheme Phase-II launched by the Solar Energy Corporation of India (SECI) in March 2019, hasn't been received well by the project development community in India. Bids with a total capacity of 1,068 MW were received, which means the tender was undersubscribed by 932 MW.

Mercom India Research said only 5 government entities submitted bids for the tender with the National Thermal Power Corporation (NTPC) bidding for 1 GW. Other government agencies that bid for the tender were NHDC (30 MW), Assam Distribution (30 MW), Nalanda University (5 MW) and DMRC (3 MW).

Only 80% of the capacity bid for can be awarded in case of undersubscription, which translates into 854 MW. As NTPC quoted the lowest tariff it would be the sole winner.

This is just the first CPSU tender. India wants to allocate 4 GW annually under the CPSU Phase-II scheme till FY 2021-22 (see India Details 12 GW CPSU Scheme Phase-II). NTPC itself floated a 1 GW tender under the scheme in June 2019 (see NTPC's 1 GW Solar Tender Under CPSU Scheme Ph-II).

Through the CPSU scheme, the government is trying to spruce up the domestic solar products manufacturing industry as it allows only locally produced solar cells and modules to be used for power generation to feed government entities.