Gujarat cancelled a solar project auction it held in end-March without assigning any reasons. Industry sources said this was because the state government felt the tariff quoted by bidders to supply power was too high.
Gujarat Urja Vikas Nigam Ltd (GUVNL) held the reverse auction on March 28 to allot 500 MW of solar projects. Gujarat-based Kalthia Engineering & Construction quoted the lowest tariff of Rs 2.98 per unit to win 50 MW, while the Gujarat State Electricity Corporation, which has also turned solar developer, got 150 MW at Rs 3 per unit. Acme Solar Power won 100 MW and Azure Power the remaining 200 MW, both quoting a tariff of Rs 3.06 per unit.
GUVNL did not reply to queries about why the auction results were unexpectedly cancelled. Sources said the agency hoped to hold the auction again after setting a reserve price lower than the winning tariffs. Read More