The Punjab Energy Development Agency (PEDA) floated a tender for setting up 2 MW of solar power on behalf of Bhakra Beas Management Board (BBMB) at the Neilla Bhakra Dam Village in Bilaspur, Himachal Pradesh. BBMB-owned land in the village will be used to develop the solar projects. BBMS will also purchase the solar power that will be generated at the tariff mentioned in the power purchase agreement (PPA).BBMB shall enter into PPA with the developer for a period of 25 years from the date as per the provisions of PPA. Fiscal incentives like accelerated depreciation, concessional customs and excise duties, tax holidays can be availed. The last date for bid submission is June 30, 2020.
After the auction, the wining bidder will have to sign a rent agreement with BBMB for 27 years. This includes the 25-year PPA period, an 18-month installation period and a 6-month period for vacating the land. The land will be leased at a rent of Rs 100 per acre per year.
Himachal Pradesh has been slowly and steadily warming up to solar power. A significant development happened in September 2019, when the Himachal Pradesh government signed two pacts for setting up solar power plants with an outlay of Rs 10 billion. One of these agreements was signed with ReNew Energy for setting up 150 MW of installed capacity while the second was signed with CSE Development for setting up a 100 MW solar plant.