Finance, Other, solar

L&T set to bag Rs 2,100-cr order for Tamil Nadu solar plant

According to reports, engineering major L&T is set to bag a Rs 2,100-crore engineering, procurement, construction order for a 300 MW solar power plant coming up in Tamil Nadu.

The solar park is coming up in a joint venture of the INDarya Green Power Pvt Ltd and the Tamil Nadu Government’s industrial development arm, TIDCO. The INDarya group owns the President Hotel in Chennai. The park is coming up near Manamadurai, where INDarya already has over 2,130 acres of land in its possession.

A 300 MW solar park would typically call for an investment of about Rs 3,000 crore.

The project developers do not intend to get into electricity generation. The idea is to develop a solar park in a modular fashion — 300 plants of 1 MW each. These plants will be sold to those who wish to own solar plants and sell electricity. In an e-mail response to BusinessLine query, A. Jagannathan, Head-Projects, INDarya, said, “Larsen and Toubro would do the EPC and will handle all technical aspects related to the park.” On a ballpark basis, a EPC contract is not less than Rs 7 crore a MW.

The project features a 230 kV sub-station within its premises. The developers promise complete infrastructure such as roads, lights, water, drainage and natural fencing.

A key selling point is the ‘solar purchase obligation’ mandated by the Tamil Nadu Government. All specified consumers (or ‘obligated companies’) are mandated to buy 6 per cent of their consumption from solar power plants from next year, says P.V. R. Krishna Rao, CEO, Earthcare, a consultancy that advises INDarya on this project. (The SPO, however, has been challenged by the Tamil Nadu Spinning Mills Association with the Appellate Tribunal for Electricity.)

The project developers further say that those who buy the solar power plants in the park will be eligible for ‘renewable energy certificates,’ which are generation-based market tradeable instruments.

“All statutory obligations will be fulfilled by our team through the single window clearance system since the project is handled by TIDCO,” Jagannathan has said in his letter.


One thought on “L&T set to bag Rs 2,100-cr order for Tamil Nadu solar plant

  1. I think TN administration needs to consider the aspect of Transmission losses and huge load on common man esp. Charanka model….. The Solar PV is INFIRM and the present grid will be endangered with such kind of concentrated activities, peaks during few hours of the day….. till the grid improvement in our Indian States….. Charanka experience or few USA experiences, Germany’s generation peak giving shocks to POLAND or EU grid, must be studied by Distribution / GEDA like organisations of TN.

    The Solar Park like situation, in principle will reduce the common facilities cost and also ensure good EPC due to good companies, but, the overheads of these companies, land cost extraction will be the negative points. Transparency will be very poor and there will be cost extraction and for Accelerated Depreciation, many small units are planned and the States will loose the Tax revenue and such schemes are the CANCER to the nation. Probably, MNRE /TEDA may even FUND these small entrepreneurs with Capital Subsidy or Viability Gap Funding !! to give free Equity to these small developers which helps them to avoid paying Taxes and also get funds to run other business and not provide power at cheap price…..

    Let TN government abolish Accelerated Depreciation, Capital Subsidy or Viability Gap Funding to these park owners and also small project developers (i.e 1 MW owners), then, you can see the real intent of such Project Promotion and to make TN government poor by not getting Taxes and also a good quality power at cheap price.

    The peak supply that too INFIRM has not been the good experience, hence, the distributed generation in small capacity say 10 to 50 MW (max) as per the present grid capacity (without smart metering technology) leads to a PRUDENT thinking of going to each TALUKA and establish 10 to 25 MW with local entrepreneurs to reduce the cost of generation and also to address the INFIRM power loading to the grid, in a decentralised way, which is more advisable as the minimum power is ensured in this state which is power starving, hence, the TN Administration should work more on every TALUKA (more in remote villages to increase the transmission line and to make government to fee that fictitious reports by IAS about the electrification will be exposed and the real development KICK START can be made… past is past, at least we should make a good beginning…).

    This kind of decentralised solar PV project development will also eliminate the real estate sharks who are holding BENAMI huge land banks to the tune of 10,000 acres per entity, which is against democratic principles where land ceiling act is a Mockery to snatch the land from small farmers and create FOOD INSECURITY and make poor to die early,


    with a maximum of 100 to 300 acres of land per Taluka, one can easily distribute solar PV power with less T & D losses and also grow agriculture products below the PV panels (which keeps the temperature of PV panels at low value and increase the power generation) and Non Agriculture costs and time can be brought down and the Farmers can also co exist while feeding few with vegetables, flower, medicinal plants, Jeera etc with a LED Photosynthesis (wherever needed)…. our company has developed such designs which uses only 2.5 to 3 Acres / MW and also allow agriculture activity with drip irrigation and one can visit: and contact me if interesting…..we wish to promote local small and new, first generation entrepreneurs with stake holding concept and the business plan is uploaded on our web site and we are ready to join hands with State government, Financial Institutions to show case the PILOTS and then copy many in every taluka with a low cost power to Common man (refer my article published in ENERGETICA INDIA, March Issue)….

    Posted by praveen Kulkarni | April 30, 2013, 8:12 am

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