This is good in more than one way for the solar developers.
How will Tangedco fund it without massive tariff rationalization is the usual question that lingers in my mind. If not funded well, the payments will stutter and hence development may not happen.
I am not seeing escalation specified clearly or may be I am missing something.
As always, the reverse – higher the volume or capacity better pricing offer, unique to India and some developing countries is intriguing. Conventional wisdom says otherwise.
Main comment is on the opposite view – Tangedco is ready to procure at 6.48. Alright. At generation end! Alright! So, tangedco absorbs transmission losses here.
So, why can’t we waive transmission losses for solar developers or make it concessional – some direct PPAs with end customers with group captive will immediately happen if that is done without much loss to the Government compared to this. Either way transmission loss is absorbed by tangedco, but higher tariff will be paid by the end user. Better, right?