More than a year after the solar auction for 184 megawatt (MW) held by the state, Uttar Pradesh is still holding back approval for the winners to commence construction of the parks. This has caused concern among the firms, which fear their calculations could go awry as input prices have surged in the past year.
The cost of solar equipment has increased with the rise of commodity prices globally and the tariff of Rs 3.17 per unit quoted in the auction in February 2020 may not be viable for the industry any longer, industry executives say. Further delays could even lead to the companies, many backed by foreign investors, to rethink their investment proposals in the state, they caution.
