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Dollar Based Solar Bidding: A Way to Attract Foreign Investors in India

News

India will soon invite bids for its first dollar-linked solar power contracts, seeking to cut costs and woo investment as Prime Minister Narendra Modi targets an unprecedented expansion in clean energy. In line with this NTPC is planning to issue dollar based bidding solar tender of 500 to 1000 MW in a month. 
Source: Live Mint

SNP Insights:

Dollar based bidding is likely to bring the solar tariff down by reducing the foreign exchange risk. This would certainly augment the foreign investors participating in India in long term fund for clean energy. Only challenge lie for securing long term fund is long term PPA, discom deviating from payment due to its financial health may poor the confident of the investor unless backed by the government securities. 


Source: SNP Infra Research