The Central government is in final stages of awarding 12,000 MW solar power generation contracts to winners of the first manufacturing-link solar scheme.
Adani Green Energy will be awarded contracts to build 8,000 MW solar generation capacity and Azure Power will develop 4,000 MW solar plants and the companies will sell electricity at a tariff of Rs 2.92 per unit.
The scheme was introduced to boost domestic solar manufacturing, where developers will be provided with assured power purchase agreements (PPA) against the capacity of solar module manufacturing plant they set up in the country.
Through the scheme, 3,000 MW of solar manufacturing units are seen to be set up by December 2021, resulting in 12,000 mw of new generating capacities by 2025. Under the scheme Adani Green Energy will build equipment-manufacturing plants for 2,000 MW solar power.
Azure Power, which does not currently plan to enter the solar cell and module making business, has partnered with Waaree Energies for 500 MW of the manufacturing linked component of the tender.
The solar generation projects linked to the scheme can be developed anywhere in India and PPA allows for the waiver of inter-state transmission charges.