IRCON International has formed a majority joint venture with Ayana Renewable Power Pvt Ltd to implement a 500-mw solar project that it won in a recent IREDA auction.
In a stock exchange filing, IRCON International said that the joint venture “IRCON Renewable Power Ltd” was incorporated on January 13, 2022. IRCON will own 76 per cent equity in the subsidiary joint venture while Ayana will own the 24-per cent remainder.
The new JV, with an initial equity capital of Rs.5 crore, will work towards development of the 500-mw grid-connected solar power plant that IRCON International won in a recent auction conducted by nodal agency IREDA.
IREDA auction
The auction, officially known as “VGF-based bidding (Tranche-III) for 5,000 MW grid-connected solar power projects in India under the CPSU Scheme Phase-II (Government Producer Scheme),” was concluded on September 30, 2021.
IREDA had offered 5 GW of grid-connected solar capacity with developers to be selected on the basis of VGF (viability gap funding) sought, through the e-reverse auction route. The auction was available only to Central public sector companies. The bid documents had specified that electricity generated from these projects was for self-use (by developer) or for other government entities, either directly or through discoms, at a tariff not exceeding Rs.2.20 per kwh. The maximum VGF offered was Rs.0.70 crore (Rs.70 lakh) per MW of installed capacity.
Also read: IRCON International Wins 500-Mw Solar Power Project In IREDA Auction
Winning developers
According to information available with T&D India, seven bidders, based on techno-commercial evaluation, were shortlisted for the e-reverse auction (e-RA). The VGF sought by these bidders was in the range of Rs.54—55 lakh per mw.
After the e-RA was conducted, on September 23, 2021, five bidders were declared successful. Apart from IRCON International that was awarded 500 mw, other winners included SJVN (1,000 mw), NLC India (510 mw), NHPC (1,000 mw) and NTPC (1,990 mw). Post e-RA, the VGF sought dropped to the range of Rs.44.72—44.95 lakh per MW. As mentioned, the maximum allowable VGF was Rs.70 lakh per mw.
(Featured photograph for representation only)
