Cancellation of auctions for renewable energy projects because of high bids has saved central and state governments Rs 3,405 crore, a top official said, although companies have sharply criticised the practice as anti-investor.
“It is important to go for a rebid if the prices are higher than expected,” Ministry of New and Renewable Energy (MNRE) secretary Anand Kumar said. “It is the duty of the ministry to see that the government purchases power at the right rate. Enough and more power is being generated, so the price also should be fair,” he told ET.
Kumar disagreed with industry experts who have maintained that such cancellations were dampening investor sentiment and would make it difficult for the country to achieve its target of 175,000 MW of renewable energy capacity by 2022.
