On the positive note, officials of Tamil Nadu Generation and Distribution Corporation Ltd. (TANGEDCO) had clear answers on the aspects like power purchase agreements (PPA) and payment mechanism, they added.
The TANGEDCO will soon call bids for setting up 1,000 MW solar power projects in the state in line with the new solar power policy announced by Chief Minister J. Jayalalithaa.
"TANGEDCO officials said the draft PPA and the draft letter of credit will be uploaded on the company's website shortly. The state power regulator has also been taken into confidence on the solar power policy," a renewable energy consultant who attended the meeting told IANS, preferring anonymity.
According to him, there are some serious unknown variables that would have real impact on the operator's profitability on which clarity is not available except verbal assurances from the top brass of TANGEDCO that they would help the investors.
"Issues on evacuation of power and the capacity of the sub-stations were the major issue raised by the potential bidders at the meeting. Clarity on the issue from TANGEDCO officials would have been better," Narasimhan Santhanam, co-founder and director at Energy Alternatives India - a renewable energy consulting firm.
Some investors said that the Jan 4 deadline was too short to tie up land and other aspects.
"In my opinion if an investor has land and planning to set up a plant of around 10 MW then he can submit his bid. But those who plan to have bigger plants but without land then bidding will be a risky proposition given the unknown variables," Santhanam said.