India’s Tata Power Solar Systems – a wholly owned subsidiary of integrated power producer Tata Power – has won the rights to develop a 250 MW solar project under the country’s central public sector undertakings (CPSU) scheme, according to a letter of award from state-owned utility NTPC Ltd.
The CPSU scheme provides viability gap funding support for Indian state-run power generators to set up 12 GW of grid-connected solar PV power projects using domestically made equipment. The capacity is to be built within the next four years.
Under the terms of the program, solar project developers can qualify for a maximum INR 7 million (USD 98,730) of viability gap funding per megawatt of planned capacity, to make projects commercially viable.
The total value of the NTPC order is INR 15,050 million, with the project to be completed within 20 months. The win brings Tata Power Solar’s total order book to approximately INR 76 billion, including external and internal orders.
Only domestically manufactured cells and modules will be used for CPSU projects.
“It is Tata Power Solar’s biggest single order from a third party. Aligning with the government’s ‘Make in India’ mission,” said Tata Power CEO and Managing Director Praveer Sinha.
In November 2019, Tata Power Solar secured a letter of award from NTPC to develop a 105 MW floating solar project in Kayamkulam, in the state of Kerala. The contract includes three years of O&M support.