E-reverse auctions for wind projects to go: MNRE secretary

The government has in-principle agreed to stop electronic reverse auction of wind power projects, renewable energy secretary Indu Shekhar Chaturvedi said on Thursday. Sources said the e-reverse auctions for other renewable projects would also be taken down as the ministry has in-principle agreed with the industry's claims that such bidding leads to unhealthy competition.

"An in-principle decision has been taken. There were complaints from the industry that e-reverse auctions is leading to the tariffs being artificially lowered leading to unhealthy competition," he said at a CII conference on India@2030 - a roadmap for Atmanirbhar Bharat in RE.

Chaturvedi said the ministry will be taking the normal single bidding route for the wind projects.


"If the e-reverse auction for wind is being taken down on transparency concerns, how can it be sustained for other renewable energy projects," a senior executive of a company said on condition of anonymity.

In e-reverse auctions, the bidders keep lowering the bids as in a typical auction. The NDA government introduced e-reverse auctions with LED lamps and extended it to coal, solar and wind power auctions.