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Mahindra Solar wants payment guarantee from States

According to reports, Dr Vish Palekar, Business Head, Cleantech, Mahindra Group, wants “payment guarantee” in the case of solar power projects set up under the various State schemes.

“Our confidence level at the Centre level is much higher, but at the State-level, we are waiting and watching,” Dr Palekar said, while speaking at Renergy 2012, Dr Palekar.

Given the bad state of finance of the various state electricity distribution companies, payment security for the electricity sold to them has been an issue with the solar power developers.

The problem has been accentuated by the fact that some States, notably Tamil Nadu, have defaulted on payments (to wind and biomass power producers in the case of Tamil Nadu.)

For instance, asked if Green Infra would put up a project under the recently announced Madhya Pradesh scheme, the company’s Chief Operating Officer, Mr Sunil Jain, noted that while Green Infra was interested, it was examining the issue of payment security.

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