MNRE removes cap on bids for renewables, industry says decision ill-timed

Industry has been asking for removing caps when market conditions favoured higher tariffs; the govt's move comes when tariff has reduced

There will be no tariff cap on renewable energy project auctions, with the government deciding to do away with the upper ceiling — a move it hopes will boost investment in solar and wind power projects.

The Ministry of New and Renewable Energy (MNRE) has issued a directive to Solar Energy Corporation of India (SECI), NTPC and state government departments.

Business Standard has reviewed the notice, which was issued recently.

The move comes after industry requested the government to remove ceiling on the bidding. Several states and SECI have a capped tariff rate, beyond which companies cannot quote while bidding for solar and