The NVVN process and Our Value Addition

India’s solar mission threw up too many candidates with applications of over 4000MW for purchasing 650MW of solar farms.  Following this, companies may be asked to state the lowest price at which they are willing to supply solar-generated power to NVVN.

The Government was concerned about companies making large and unrealistic bids; and so the ministry had set a limit of 5 mw per applicant for panel-based solar plants and 100 mw per company for steam-based solar plants. However, around 400 companies have applied, including nearly all the big players in the infrastructure and power business such as GMR, GVK, L&T and Adani Power.

The PPAs are expected to be signed in November or December.  The 650 mw programme is part of the first phase of the National Solar Mission, and will be followed by second round to produce another 350 mw, taking the total approved capacity to 1,000MW.  The shortfall of 100MW will be covered by solar projects under the “migration”scheme

The time period given to set up the thermal power plants is 2.5 years whereas for PV it is only 10 months; of signing the PPA.

Companies looking to enter the solar field in the second stage will need to take into effect the land, and financing into effect more than the technology. The technology understanding is being developed slowly but lack of good locations and financing at the right time can hamper plans. 

Also debt at a good rate is vital to make the project financially more attractive especially when the tariffs are such as of the Gujarat State.

Companies looking at developing a long term business model in solar will also like to vertically integrate themselves in the solar chain.

We assist companies with:

1. Equity financing through Joint Venture partners; at application stage itself, PPA stage, sweat equity, complete buyout.

2. Convertible debt / Vanilla debt / combination of convertible & vanilla debt

3. Assisting foreign companies with India Entry Strategy

Our Projects:

1. We are buy-side advisors for solar companies looking to invest in solar farms across India

2. We are assisting an European solar EPC company enter the Indian market through a right partner

3. Assisting a German Solar training company enter the Indian market

4. Assisting companies set up solar module manufacturing with the right technology and JV partners

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