Home » Solar » NVVN to encash bank guarantees of 14 developers under National Solar Mission due to commissioning delays

NVVN to encash bank guarantees of 14 developers under National Solar Mission due to commissioning delays

According to reports, more trouble is brewing for solar photovoltaic project developers, including Lanco. NTPC Vidyut Vyapar Nigam (NVVN) is in the process of en-cashing the second tranche of bank guarantees from 14 project developers for missing the second deadline of February 9, to commission the projects under the first batch of phase I of the National Solar Mission.

Besides the 14 developers, some other projects developers have also been added in the list, whose first tranche will be en-cashed, sources said. In the fresh addition, there are four projects in which Lanco is indirectly involved (through engineering procurement and construction contracts).

The initial deadline of January 9 was set by the NVVN for commissioning of projects under the first batch of National Solar Mission phase 1. The developers were given a month to finish the project after the lapse of the first deadline. The penalty for the second tranche for each project averages around Rs 4 crore.

Last month, in compliance to the guidelines, bank guarantees of 14 developers amounting to about Rs 28 crore were encashed. Of these 14 projects, Lanco is the EPC contractor in three.

However, sources were quick to point out that in no way does this derail the implementation of the Mission. In fact, NVVN is treading cautiously after the recent controversy over alleged contravention of one project-one proponent norm in the Mission by Lanco. It is now reviewing all the 28 solar photovoltaic projects under the first batch of phase I.

The trading arm of NTPC has been designated the nodal agency for sale and purchase of grid connected solar power under phase I of the Mission. Under the first batch, 35 new projects were expected to generate 610 MW of solar power (140 MW of photovoltaic and 470 MW thermal).

Grid connectivity of 140 MW of photovoltaic was expected by January 2012 and 470 MW thermal by May 2013.

Sources said that power was being generated from all the photovoltaic projects under phase I.

At present, NVVN is procuring 48 MW of solar energy from the migrant photovoltaic projects — those that migrated to the Mission. The total photovoltaic capacity from these projects is expected at 54 MW. However, with power from phase I coming in, the capacity has gone up significantly.

Leave a Reply

Your email address will not be published. Required fields are marked *


Scroll To Top