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new Delhi8 hours ago
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According to the agreement between Adani Green and Solar Energy Corporation of India, if SECI does not find a buyer, it will have no legal or financial obligation towards the project.
- When the SECI took out the tender of the project in June 2019, it was guaranteed a power purchase agreement.
- When the agreement was signed a year later, the PPA condition was removed from it.
There is no guarantee that the customer will be able to get the $ 6 billion solar power project announced by Adani Green Energy in June this year. This is indicated by the company’s agreement with the country’s major solar power purchasing agency. This may put the company in heavy financial trouble.
The details of the agreement between Adani Green and Solar Energy Corporation of India Limited (SECI) show that if SECI does not find a buyer, it will have no legal or financial obligation to the project. When the SECI took out the tender of the project in June 2019, it was guaranteed a Power Purchase Agreement (PPA). But when the agreement was signed a year later, the PPA condition was removed from it.
The company’s shares have soared 3x since the signing of the agreement.
The shares of the company of billionaire Gautam Adani have increased by three times since the signing of this 8 GW (GW) agreement. This agreement was described by Adani as the largest and historic agreement of its kind in the country so far. On Friday, Adani Green Energy shares jumped 4.77 percent to close at Rs 1135.55 on the BSE.
SECI is yet to find more buyers for the project
The company has said that the power generation capacity of 2 GW will be ready by 2022, while after that by 2025 new capacity of 2 GW will be created every year. SECI is yet to find more buyers for the project. Adani Green has said that he will get interim funding from the consortium of foreign banks for the project and later also raise money from the capital market.
Aim to become world’s largest renewable energy company by 2030
Adani Green wants to become the world’s largest renewable energy company by 2030. It currently has an installed capacity of 2.8 GW renewable energy. The company wants to increase this to 25 GW by 2025.
Claim to get a fair margin at a price of Rs 2.92 / kwh
Gautam Adani had said in June that the agreement with SECI would yield a fair margin of Rs 2.92 / kwh at a power price. On the other hand, SECI has also removed the PPA condition from agreements with some other renewable energy companies. SECI MD JN Swine has said that potential buyers were discussed and market analyzed before an agreement was reached with Adani.