Andhra Pradesh government is in the process of increasing solar power generation capacity in the state through the involvement of private players.

AP Transco earlier invited bids from private parties for 1,000 mw power projects in 161 locations published in the request for qualification document. In response to this, several bidders had submitted their bids for 122 notified locations.

On March 5, financial bids were opened after evaluation the of technical bids. Thereafter, the process of evaluation of financial bids was completed.

The Andhra Pradesh Power Coordination Committee asked these bidders to come forward with their proposal to take part in the process for finalisation of developers. The committee asked developers willing to take part in the bids to submit their intent. However, in cases where the High Court has taken up the issue, it has been deferred until getting permission from the High Court.

The committee asked some of the bidders to extend the bid validity and bank guarantee period till September 30, in cases which are now under consideration by the Andhra Pradesh High Court.

Following a meeting of a Cabinet Sub-Committee headed by State Finance Minister Anam Ramnarayana Reddy, it was decided that the purchase price of solar power through the competitive bidding route is Rs 6.49 per unit at all the notified locations.