Under Category 1, a total of 50 MW will be allotted for newly incorporated or existing companies that have no experience in setting up and operating solar projects.
The minimum capacity of the project under Category 1 has been set at 1 MW and the maximum capacity at 4 MW. The allotment of project capacities in this category will be in the multiples of 1 MW.
Under Category 2, the government plant to allot a total of 250 MW to experienced companies that have installed and commissioned at least one project with a capacity of 5MW or higher anywhere in the world which is in operation for at least one year before the last date of submission of e-bid anywhere in the world.
The minimum capacity of the project under Category 2 bid can be 5 MW and the maximum capacity allowed for a single developer is 30 MW. The allotment of project capacities in this category will be in the multiples of 5 MW.
The benchmark tariffs for the bidding process have been fixed at INR 8.75/kWh for companies not availing accelerated depreciation and INR 7.87/kWh for companies availing accelerated depreciation.
The government of Punjab has announced several incentives such as exemption from Value Added Tax (VAT) on equipment, exemption from entry tax for equipment supplies, exemption from payment of fee and stamp duty for registration / lease deed charges for the project’s land requirement and exemption from change of land use (CLU) charges.
Punjab is the first state to allow the use of agricultural land for setting up solar projects. This is especially relevant as almost the entire state is made of up cultivable land as opposed to Rajasthan and Gujarat where large tracts of desert wasteland can be used for setting up solar projects.
The RfP allows a period of six months for achieving a financial closure and 13 months for commissioning from the date of signing the PPA. Developers have to submit bank guarantees worth INR 4m/MW. Developers face a fine of 30 percent of this guarantee in case the project is delayed up to one month and the entire guaranty will be en-cashed for a delay of two months.
The Punjab Policy is expected to attract higher tariffs than other states like Rajasthan, Tamil Nadu and Odisha. This is primarily due to the high cost of land, which can be up to at least 5-10 times more than in Rajasthan, and a lower irradiation, which can be up to 20 percent lower than in Rajasthan.
The last date for bid submission is 25th April 2013.
Recently Karnataka also launched bid for 130 MW of solar PV projects under its state solar policy. Â The bid also targets concentrated solar panel (CSP) projects. The state has opted for a reverse auction based on a benchmark tariff of INR 14.50/kWh for PV and 11.35/kWh for CSP.