Gujarat Urja Vikas Nigam Limited (GUVNJ) had petitioned Gujarat Electricity Regulatory Commission (GERC) for a tariff cut for the solar projects operating in the state. The reason cited was that the capital costs had fallen considerably by the time the projects had actually been commissioned in the state.
The news has come that GERC has dismissed the petition of GUVNJ; thereby favoring the solar project developers and investors.
GUVNL was asking in tariff reduction based on:
1. Current FIT is not in line with actual project cost (between 8 Crore to 12 Crore) against what were proposed at the time of policy making i.e. 17.5 crore
2. Equity (30% of project cost as per policy) servicing of 14% can only be applied to one invested in reality (less than 30% with some developers) which GUVNL say they don’t find with many of the developers account.
Solar PV |
News published on 20 / 08 / 2013 by Bharat Vasandani