“Scatec and ACME have decided to put the 900 MW project in India on hold due to lack of supply of domestic solar panels and a 40% import duty on solar panels to be imposed from April 1,” Scatec said in its quarterly earnings report.
Last year Scatech had entered a partnership with ACME to develop 900 MW solar power plant in the state of Rajasthan, India. The project holds a 25-year PPA with Solar Energy Corporation of India (SECI) secured in a tender in 2018.
The project had an estimated total capex of USD 400 million, with 75% debt financing from an Indian state-owned lender. Scatec to hold a 50% economic interest in the project, while 50% to retain by ACME. ACME was the turn-key EPC (Engineering, Procurement and Construction) provider for the project. Scatec was to ensure delivery according to international standards, HSSE and E&S, as well as optimisation of engineering, procurement and operations of the plants. The annual production from the plant was expected to be 1,600 GWh.
The plant was expected to be completed in 2022 but building work had not yet begun.
To reduce its dependency on imports India has decided to levy BCD on solar modules and solar cells. Also to boost local manufacturing, in the recent budget the Government has decided to allocate Rs. 19500 Crore to solar PLI scheme, as India seeks to deploy 280 GW of solar capacity by 2030.